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Canadian dollar weakens 0.3% against greenback
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Hits six-day low at 1.3451
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Ten-year yield near seven-week high at 3.315%
TORONTO, Feb 16 (Reuters) - The Canadian dollar weakened
to a six-day low against its U.S. counterpart on Thursday as
U.S. economic data rattled investors, while Bank of Canada
Governor Tiff Macklem prepared to make an appearance before a
parliamentary committee.
U.S. stock indexes fell and the U.S. dollar rose
against a basket of major currencies as the economic data stoked
fears that the Federal Reserve would stick to its hawkish
monetary policy for longer than previously expected.
The number of Americans filing new claims for unemployment
benefits unexpectedly fell last week, offering more evidence of
the economy's resilience despite tighter monetary policy, and
monthly producer prices accelerated in January.
The Canadian dollar was trading 0.3% lower at 1.3435
to the greenback, or 74.43 U.S. cents, after touching its
weakest level since Friday at 1.3451.
Bank of Canada Governor Tiff Macklem and Deputy Governor
Carolyn Rogers are due to appear before the House of Commons
Standing Committee on Finance at 11 a.m. EST (1600 GMT).
The Canadian central bank has signaled a pause in its
interest rate hiking campaign, but investors are betting on
additional tightening after last week's blockbuster employment
report. U.S. crude oil futures prices were up 0.5% to $79.01
a barrel as hopes for a Chinese demand recovery offset a large
build in U.S. crude inventories. Oil is one of Canada's major
exports.
Canadian government bond yields were mixed across the curve.
The 10-year touched its highest level since Dec. 30
at 3.315% before dipping to 3.289%, up 2.6 basis points on the
day.
(Reporting by Fergal Smith; Editing by Paul Simao)
