* Canadian dollar at C$1.3168, or 75.94 U.S. cents
* Loonie on course to rise 0.9 percent for the week
* Bond prices lower across steeper maturity curve
TORONTO, Oct 14 The Canadian dollar strengthened
against its U.S. counterpart on Friday as stronger-than-expected
Chinese inflation data helped restore risk appetite and oil
A pickup in China's consumer prices helped ease investors'
concerns about the health of the world's second-largest economy
after disappointing trade numbers on Thursday rattled global
The U.S. dollar held its earlier gains versus a
basket of currencies on Friday as data on U.S. retail sales and
producer prices in September supported the view of a modest U.S.
U.S. crude prices were up 0.38 percent at $50.63 a
barrel, supported by a drop in U.S. fuel inventories, though
gains were kept in check by ample crude supplies even as OPEC
plans to cut output.
The loonie's normally tight link with the price of oil, one
of Canada's major exports, has weakened ahead of the U.S.
presidential election and a potential interest rate hike by the
At 9:24 a.m. EDT (1324 GMT), the Canadian dollar
was trading at C$1.3168 to the greenback, or 75.94 U.S. cents,
stronger than Thursday's close of C$1.3205, or 75.73 U.S. cents.
The currency's weakest level of the session was C$1.3225,
while it touched its strongest since Monday at C$1.3153.
For the week, the loonie was on course to rise 0.9 percent.
Much of the gain came on Thursday as investors who got short the
currency following China's weak trade data were forced to cover
their positions as oil and U.S. stocks rebounded from session
Sales of existing Canadian homes rose 0.8 percent in
September from August, a report from the Canadian Real Estate
Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
fell 3.5 Canadian cents to yield 0.616 percent and
the benchmark 10-year declined 30 Canadian cents to
yield 1.213 percent.
The Belgian fortress city of Namur, besieged by European
armies down the centuries, issued a declaration of war on the
global economic order on Friday with a vote to reject a planned
EU-Canada free trade agreement.
(Reporting by Fergal Smith; Editing by Phil Berlowitz)