TORONTO, April 6 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as investors doubted that stronger-than-expected domestic jobs data would spur the Bank of Canada to abandon its pause on interest rate hikes.
The Canadian dollar was trading 0.1% lower at 1.3470 to the greenback, or 74.24 U.S. cents, after moving in a range of 1.3448 to 1.3505.
Canada's economy added 35,000 jobs in March, eclipsing forecasts of a 12,000 gain, and the jobless rate remained near a record low, signaling economic resilience.
"Unexpectedly strong job growth normally means a stronger economy, higher inflation, and potentially a hawkish monetary policy response," said Jay Zhao-Murray, a market analyst at Monex Canada Inc.
But the Bank of Canada is unlikely to raise interest rates amid risk "that banking stresses go from global to local," Zhao-Murray said.
Last month, Canada's central bank paused its tightening cycle after eight consecutive rate hikes. Economists polled by Reuters expect the bank will keep its benchmark rate steady at 4.50% through 2023, while money markets are betting that the next move in rates will be a cut.
The loonie has been supported in recent days by a sharp increase in the price of oil , one of Canada's major exports, after OPEC and its allies cut output targets. On Tuesday, the currency touched a seven-week high at 1.3406.
Oil settled 0.1% higher at $80.70 a barrel on Thursday, while Wall Street rose in choppy trade as investors awaited U.S. jobs data following recent signs of a slowing economy.
Canadian government bond yields were mixed across a flatter curve ahead of a market holiday on Friday for Good Friday.
The 2-year rose 6.6 basis points to 3.630%, while the 10-year was down about half a basis point at 2.789%.
