CANADA FX DEBT-Canadian dollar hovers near one-week high as stocks rally
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Loonie touches its strongest since Sept. 26
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Price of U.S. oil rises 2.1%
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Canadian bond yields ease across curve
TORONTO, Oct 4 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart, with the currency holding near its strongest level in more than one week as oil prices rose and a recovery in risk appetite gathered momentum.
Global stocks and bond prices rallied, buoyed by a growing belief among investors that central banks may be on the verge of shifting down a gear in their quest to fight inflation.
The price of oil, one of Canada's major exports, climbed on expectations of a large cut in crude output from the OPEC+ producer group while strong demand and looming sanctions on Russian oil also supported prices.
U.S. crude prices were up 2.1% at $85.4 a barrel, while the Canadian dollar was trading nearly unchanged at 1.3615 to the greenback, or 73.45 U.S. cents.
It touched its strongest intraday level since Sept. 26 at 1.3569 after notching on Monday its biggest daily gain in more than two years.
Bank of Canada Governor Tiff Macklem is due to speak on Thursday and could offer clues on the outlook for further interest rate hikes as inflation shows signs of peaking.
Canadian economists are scrambling for a reliable measure to track underlying inflation as large and frequent revisions have dented the credibility of a key BoC yardstick, even as the central bank said it was sticking with its core measures.
Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries.
The 10-year eased 5.4 basis points to 3.077%, moving toward the lower end of its range in recent weeks. (Reporting by Fergal Smith; Editing by Emelia Sithole-Matarise)
