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Canadian dollar gains 0.3% against the greenback
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Touches its weakest since Friday at 1.3659
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Price of U.S. oil falls 0.4%
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Canadian bond yields rise across curve
TORONTO, March 1 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday, recovering from an earlier five-day low, as investors weighed mixed economic signals globally and domestic data showed factory activity accelerating to a seven-month high. The loonie was trading 0.3% higher at 1.3610 to the U.S. dollar, or 73.48 U.S. cents, after touching its weakest intraday level since Friday at 1.3659. Canadian manufacturing activity expanded at a faster pace in February as measures of output and new orders both rose, while inflation pressures continued to ease. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 52.4 in February from 51.0 in January, posting its highest level since July. It follows data on Tuesday that showed the Canadian economy likely rebounded in January after recording no growth in the final three months of 2022.
The U.S. dollar slumped against a basket of major currencies after China's manufacturing activity expanded at its fastest pace since April 2012, bolstering the outlook for the global economy, and after the euro was boosted by regional German inflation data that signaled price pressures remain high. The price of oil, one of Canada's major exports, slipped as signs of ample supply and rising U.S. crude inventories countered hopes for higher demand from China. U.S. crude prices were down 0.4% at $76.75 a barrel. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year yield rose 2.6 basis points to 3.364%. Canada is due to auction C$3.5 billion ($2.6 billion) of 2-year bonds, with the bidding deadline set for 12 p.m. ET (1600 GMT). (Reporting by Fergal Smith Editing by Tomasz Janowski)
