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Canadian dollar strengthens 0.1% against the greenback
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Trades in a range of 1.3434 to 1.3489
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Price of U.S. oil increases 0.7%
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Canadian bond yields ease across curve
TORONTO, April 12 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday as investors welcomed data showing some cooling in U.S. inflation, but the move in the currency was limited ahead of a Bank of Canada interest rate decision. The U.S. consumer price index rose 5% in the 12 months through March, the smallest year-on-year gain since May 2021, which could support hopes that the Federal Reserve is nearing a pause in its interest rate hiking campaign. U.S. stock index futures rallied and the price of oil , one of Canada's major exports, added to its recent gains, rising 0.7% to $82.09 a barrel, while the U.S. dollar fell against a basket of major currencies. The Canadian dollar was up 0.1% at 1.3450 to the U.S. dollar, or 74.35 U.S. cents, after trading in a range of 1.3434 to 1.3489. The Bank of Canada has already moved to the sidelines, after lifting its benchmark rate to a 15-year high of 4.50%. The Canadian central bank is due to announce a policy decision at 10 a.m. ET (1400 GMT). It is expected to keep rates on hold as inflation cools and because of stress in the global banking system, despite the fact that growth accelerated in the first quarter, analysts said. Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year eased 4.5 basis points to 2.866%. (Reporting by Fergal Smith; Editing by Sharon Singleton)
