Please use symbol entry at top right of page to search

CANADA FX DEBT-Canadian dollar notches two-month high as stocks climb


Canadian dollar strengthens 0.5% against the greenback


Touches its strongest since Nov. 18 at 1.3304


Price of U.S. oil rises 2.1%


Canadian bond yields rise across curve

TORONTO, Jan 26 (Reuters) - The Canadian dollar strengthened to its highest level in more than two months against its U.S. counterpart on Thursday as equity markets rose and after the Bank of Canada pushed back against the notion it would soon shift to interest rate cuts.

The loonie was trading 0.5% higher at 1.3320 to the greenback, or 75.08 U.S. cents, after touching its strongest since Nov. 18 at 1.3304.

The gain for the loonie came as Wall Street shares rose after data showed the U.S. economy expanded at a faster-than-expected pace in the fourth quarter. Canada sends about 75% of its exports to the United States, including oil.

U.S. crude futures were up 2.1% at $81.83 a barrel on expectations that demand will strengthen as top oil importer China reopens its economy and on news U.S. crude inventories have risen less than expected.

BoC Governor Tiff Macklem on Wednesday said he was focused on whether interest rates would need to go higher and was not even considering a cut.

Traders are betting that the central bank will ease as soon as October after it signaled a pause in its tightening campaign following the latest rate hike.

After Canada's central bank posted its first ever quarterly loss, the federal government plans to introduce legislation enabling the central bank to retain profits rather than remit them to the government, Macklem said.

Canadian wholesale trade most likely fell 1.8% in December from November, largely reflecting lower sales in the machinery, equipment and supplies subsector, Statistics Canada said in a flash estimate on Thursday.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year rose 3.9 basis points to 2.842%. (Reporting by Fergal Smith Editing by Bernadette Baum)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.