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Canadian dollar weakens 0.3% against the greenback
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Canada's economy adds 35,000 jobs in March
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Canadian bond yields rise across flatter curve
TORONTO, April 6 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Thursday, giving back some of its recent gains, despite domestic data showing the economy added more jobs than expected last month. Canadian employment rose by 35,000 in March and the jobless rate remained near a record low, indicating continued labor market strength despite fears of an economic slowdown. Analysts had forecast a jobs increase of 12,000. The Canadian dollar was trading 0.3% lower at 1.35 to the greenback, or 74.07 U.S. cents, extending its pullback from a seven-week high that it touched on Tuesday at 1.3406. The currency was still up 0.1% since the start of the week, helped by a sharp increase in the price of oil, one of Canada's major exports, after OPEC and its allies cut output targets. Thursday's decline for the loonie came as data showing the number of Americans filing new claims for unemployment benefits deepened fears a rapid rise in interest rates would lead to a U.S. recession. Canada sends about 75% of its exports to the United States. The Bank of Canada is due to make an interest rate decision and update its economic forecasts next Wednesday. It will keep its benchmark rate steady at 4.50% through 2023, according to most economists polled by Reuters. Canadian government bond yields were higher across a flatter curve ahead of a market holiday on Friday for Good Friday. The 2-year rose 2.8 basis points to 3.592%, while the 10-year was up 1.1 basis points at 2.806%. (Reporting by Fergal Smith; editing by Barbara Lewis)
