CANADA FX DEBT-Canadian dollar steadies as Washington protests curb risk appetite

  • 1/6/2021
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(Adds dealer quotes and details throughout; updates prices) * Canadian dollar was near flat against the greenback * Loonie touches its strongest intraday since April 2018 at 1.2630 * Price of U.S. oil settles 1.4% higher * Canada"s 10-year yield touches a four-week high at 0.781% By Fergal Smith TORONTO, Jan 6 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday, pulling back from a near three-year high hit earlier in the day as investors took some profits and protests in Washington crimped risk appetite. The loonie was trading nearly unchanged at 1.2674 to the greenback, or 78.90 U.S. cents. Earlier, it touched its strongest intraday level since April 2018 at 1.2630 as investors bet that a Democrat-controlled Senate would lead to more fiscal stimulus. Canada sends about 75% of its exports to the United States. "I think originally the theme for the Canadian dollar was largely positive," said Rahim Madhavji, president at KnightsbridgeFX.com. "There has been a little bit of profit taking, a little bit of risk aversion, a bit of tapering back in the markets as well." Wall Street pared gains after the U.S. Capitol went into lockdown as supporters of President Donald Trump stormed the building. The price of oil , one of Canada"s major exports, settled 1.4% higher at $50.63 a barrel after Saudi Arabia announced a big voluntary production cut and as U.S. crude inventories declined in the latest week. Canadian government bond yields were higher across much of a steeper curve in sympathy with U.S. Treasuries. The 10-year rose 4 basis points to 0.753%. It touched its highest since Dec. 8 at 0.781%. Canada"s trade report for November is due on Thursday, while the December jobs report is set for Friday. (Reporting by Fergal Smith; editing by Emelia Sithole-Matarise abd Alistair Bell)

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