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Canadian dollar dips 0.2% against the greenback
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Canadian retail sales rise 0.7% in August
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Price of US oil increases 0.9%
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Canadian 10-year yield touches a 14-year high
TORONTO, Oct 21 (Reuters) – The Canadian dollar edged lower against its US counterpart on Friday as Treasury yields continued to climb, while a preliminary domestic estimate showed that retail sales fell in September after rebounding more than expected in August.
The US 10-year yield rose to a fresh multi-year high, with markets seeing no let-up in monetary policy tightening from the Federal Reserve, causing shares to slip and the US dollar to jump against a basket of major currencies.
The Canadian dollar was down 0.2% at 1.3790 to the greenback, or 72.52 US cents, after trading in a range of 1.3752 to 1.3854.
For the week, it was on track to advance 0.7% as hotter-than-expected domestic inflation data bolstered bets for another hefty interest rate hike by the Bank of Canada.
Canadian retail sales grew by 0.7% in August from July, beating estimates for a 0.2% increase, helped by higher sales at food and beverage stores, data from Statistics Canada showed.
Flash estimates showed retail sales falling by 0.5% in September and wholesale trade dipping 0.2%.
Meanwhile, US crude oil prices were up 0.9% at $85.23 a barrel on hopes of higher Chinese demand and output cuts by OPEC and its allies. Oil is one of Canada’s major exports.
Canadian government bond yields were mixed across a steeper curve. The 10-year touched its highest since November 2008 at 3.779% before dipping to 3.726%, up 4.4 basis points on the day. (Reporting by Fergal Smith; Editing by Emelia Sithole-Matarise)