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Canadian dollar weakens 0.8% against the greenback
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Touches its weakest since Jan. 4 at 1.3665
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Flash estimate shows wholesale trade up 3% in January
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Canadian bond yields rise across curve
TORONTO, Feb 24 (Reuters) - The Canadian dollar weakened to a seven-week low against its U.S. counterpart on Friday as worries about the Federal Reserve's interest rate outlook offset additional evidence the domestic economy remained robust at the start of the year. Wall Street fell and the U.S. dollar rallied against a basket of major currencies as U.S. consumer spending rebounded sharply in January, while inflation accelerated, fueling fears that the Fed could continue raising interest rates through the summer.
The price of oil, one of Canada's major exports, was also down as rising inventories in the United States and concerns over global economic activity offset the prospect of lower Russian exports. U.S. crude prices fell 1.1% to $74.57 a barrel, while the Canadian dollar was trading 0.8% lower at 1.3650 to the greenback, or 73.26 U.S. cents, after touching its weakest since Jan. 4 at 1.3665. For the week, it was on track to lose 1.3%. Canadian wholesale trade most likely rose 3.0% in January from December, largely reflecting higher sales in the machinery, equipment and supplies subsector, Statistics Canada said in a flash estimate. A preliminary estimate on Tuesday showed a 0.7% gain in retail sales in January after a December gain, while previous data for January showed the economy added 10 times more jobs than expected and manufacturing activity picked up.
Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasury yields.
The 10-year climbed 7.6 basis points to 3.410%,
moving back in reach of the three-month high it posted on
Tuesday at 3.447%.
(Reporting by Fergal Smith)
