The U.S. dollar fell to two-and-half month lows against its Canadian counterpart on Friday, as a rebound in oil prices lent support to the commodity-linked Canadian currency, although upbeat U.S. economic growth limited the greenback’s losses
The Canadian dollar strengthened as U.S. crude oil prices rose to a one-month high above $34 a barrel following reports Saudi Arabia, Qatar, Venezuela, and Russia will meet in March to discuss capping crude oil production.
However, gains were expected to remain limited as concerns over a global supply glut did not disappear.
Meanwhile, preliminary data showed that U.S. gross domestic product grew 1.0% in the fourth quarter, compared to a previously reported 0.7% growth rate and expectations for a 0.4% rate.
A separate report showed that the U.S. goods trade deficit widened to $62.23 billion in January from $61.50 billion the previous month. Analysts had expected the goods trade deficit to narrow to $61.10 billion last month.
In Japan, data earlier showed that Tokyo’s consumer price index rose at an annual rate of 0.1% in February, compared to expectations for a 0.3% fall and after a 0.3% slip the previous month.
Tokyo’s core CPI, which excludes fresh food, ticked down 0.1% this month, confounding expectations for a 0.2% fall and after a 0.1% decline in January.
Sterling remained under pressure as concerns over a potential Brexit lingered.
Several senior members of Prime Minister David Cameron’s Conservative party, including London Mayor Boris Johnson, said this week that they will be backing the campaign to leave the EU, in a blow to his plans to remain in the bloc.
Earlier Friday, Bank of England Governor Mark Carney said that global growth was a “serial disappointment” and that monetary stimulus did have value as it supports economic activity
Carney was speaking at the G20 Conference, in Shanghai.
In the eurozone, preliminary data showed that Germany’s CPI ticked up 0.4% in February, disappointing expectations for a 0.5% rise, after a 0.8% fall the previous month. Year-on-year, consumer prices were flat, compared to expectations for a 0.1% gain.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.28% to 97.72, re-approaching Wednesday’s three-week high of 97.92.