Canada's dollar strengthened as inflation data hits U.S. dollar


Canadian dollar strengthens 0.2% against the greenback Loonie trades in a range of 1.2489 to 1.2548 Price of U.S. oil falls 0.9% Canadian bond yields are mixed across the curve TORONTO, Aug 11 - The Canadian dollar strengthened against the greenback on Wednesday as investors weighed the impact of U.S. inflation data on the Federal Reserve's policy outlook with the currency adding to its recovery from a near two week low the day before. The U.S. Dollar against a basket of major currencies after data showed that U.S. consumer price increases slowed in July Still, inflation was historically high as supply chain disruptions and stronger demand for travel related services came into play as economic activity recovered. The Fed is attentive to price pressures as it mulls when to reduce its massive bond holdings. A signal on the timing could come on August 26 - 28 in Jackson Hole, Wyoming, at a meeting of central bankers in Jackson Hole, Wyoming. The Canadian dollar traded 0.2% higher at 1.2497 to the greenback, or 80.02 U.S. cents, after trading in a range of 1.2489 to 1.2548. On Tuesday, the currency touched its weakest intraday level since 27 July at 1.2589, but then rebounded as the U.S. SenateU.S. Senate passed a $1 trillion infrastructure package and oil, one of Canada's major exports, clawed back some recent losses. On Wednesday, U.S. crude prices were down 0.9% at $67.65 a barrel, as the United States urged OPEC and its oil-producing partners to boost output, saying current production is not enough and could threaten the global economic recovery. The Treasury Department was mixed output of Canadian government bonds across the curve. The ten year period was little changed at 1.271%, after earlier touching its highest since July 15 at 1.295%.