TORONTO, Oct 20: The Canadian dollar made gains against the US dollar on Friday after a higher than expected headline inflation reading was seen reducing the chances of a interest rate cut by the Bank of Canada.
Domestic bond prices reversed course to end higher across the yield curve, in tandem with the US Treasury market, as stock markets fell.
The Canadian dollar closed at 96.57 Canadian cents to the US dollar, or US$1.0355, up from Thursday’s close of 97.37 Canadian cents to the US dollar, or US$1.0270.
The currency shot to US$1.0357 following the release of consumer price inflation data, and hung on to those gains for most of the session, coming close to a 33-year high against its US counterpart.—Reuters
