The Canadian dollar strengthened to a four-week high against its U.S. counterpart on Friday after domestic data showing a much bigger-than-expected jobs gain in September supported bets for the Bank of Canada to keep interest rates on hold this month.
The Canadian economy added 53,700 jobs in September, the second straight month of robust jobs gains, Statistics Canada data showed. Analysts had forecast a gain of 10,000 jobs
Chances of a Bank of Canada interest rate cut at the October 30 policy decision dipped to 7 per cent from 9 per cent before the data, the overnight index swaps market indicated.
The central bank has kept its benchmark rate on hold at 1.75 per cent this year even as other central banks, including the Federal Reserve and the European Central Bank, have eased.
At 9:03 a.m. (1303 GMT), the Canadian dollar was trading 0.6 per cent higher at 1.3218 to the greenback, or 75.65 U.S. cents. The currency touched its strongest intraday level since Sept. 12 at 1.3206.
Rising investor hopes for a partial trade deal between the United States and China, as top negotiators from the two countries geared up to meet for a second day of talks, added to support for the loonie.
