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Canadian dollar strengthens 0.2%
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Price of U.S. oil rises 2.3%
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Canadian payroll employment rises 0.5% in December
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Canadian bond yields trade mixed
TORONTO, Feb 23 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as oil prices rebounded, but gains for the currency were modest as data continued to signal a tight labour market in the United States. The price of oil, one of Canada's major exports, rallied after a sharp decline in the previous session, gaining support from Russian supply curbs. U.S. crude prices rose 2.3% to $75.68 a barrel, while the Canadian dollar was trading 0.2% higher at 1.3525 to the U.S. currency, or 73.94 U.S. cents, after moving in a range of 1.3517 to 1.3556. On Wednesday, the currency touched a near seven-week low at 1.3568 as investors bet that the Federal Reserve would raise interest rates to a higher endpoint than previously thought. The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, data showed on Thursday. Investors worry that a tight labour market will make it more difficult for the Fed to bring inflation under control. Canada's labour market is also tight. Payroll employment rose by 91,400, or 0.5%, in December from November, data from Statistics Canada showed. Canadian government bond yields were mixed. The 10-year eased nearly half a basis point to 3.367% after touching on Tuesday its highest level in more than three months at 3.447%. Canada is due to auction C$4 billion ($3.0 billion) of 10-year bonds, with the bidding deadline set for 12 p.m. ET (1700 GMT). (Reporting by Fergal Smith; Editing by Sharon Singleton)
