* Canadian dollar weakens 0.1% against the greenback* Touches its strongest intraday since Sept. 1* Price of U.S. oil settles 0.4% lower* Canadian bon
* Canadian dollar weakens 0.1% against the greenback
* Touches its strongest intraday since Sept. 1
* Price of U.S. oil settles 0.4% lower
* Canadian bond yields ease across curve
TORONTO, Sept 13 (Reuters) – The Canadian dollar edged
lower against its U.S. counterpart on Wednesday, pulling back
from an earlier 12-day high, as oil prices dipped and investors
assessed U.S. inflation data.
The loonie was trading 0.1% lower at 1.3563 to the
greenback, or 73.73 U.S. cents, after touching its strongest
level since Sept. 1 at 1.3522.
U.S. consumer prices rose month-over-month at the fastest
pace in 14 months in August, and while that was driven largely
by volatile energy costs, a measure of underlying inflation also
accelerated unexpectedly, keeping alive prospects of an
additional interest rate hike by the Federal Reserve.
“Inflation is not easing enough for the Fed to abandon their
hawkish stance,” Edward Moya, senior market analyst at OANDA,
said in a note. “The upside surprises might be small, but that
should keep the hawks in control.”
Canada is a major producer of commodities, including oil, so
the loonie tends to be sensitive to the signal that the Fed
policy outlook sends about prospects for the global economy.
U.S. crude oil futures settled 0.4% lower at $88.52 a
barrel, but was holding on to much of its recent gains.
The ratio of Canadian household debt-to-income narrowed to
180.0% in the second quarter from a downwardly revised 180.2% in
the first quarter, Statistics Canada said.
Canadian government bond yields were lower across the curve,
tracking moves in U.S. Treasuries. The 10-year eased
2.9 basis points to 3.669%.
(Reporting by Fergal Smith)
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