* C$ at C$1.0209 vs US$, or 97.95 U.S. cents
* C$ touches one-week high after U.S. jobless claims
* U.S. dollar broadly weaker
By Andrea Hopkins
TORONTO, April 25 The Canadian dollar hit its
strongest level in more than a week against its U.S. counterpart
on Thursday after U.S. data showed a fall in new jobless benefit
claims, briefly tempering broader fears about tepid U.S.
"We traded all the way down to C$1.0201, so it's been a very
strong morning, a lot just based on U.S. dollar broad-based
weakness," said Camilla Sutton, chief currency strategist at
"All in all it's a broadly weaker U.S. dollar day, we don't
have a lot of data from Canada."
The number of Americans filing new claims for unemployment
benefits fell last week by a surprisingly large 16,000 to
339,000, offering reassurance the bottom is not falling out of
the labor market despite signs of slower growth.
The unexpected strength boosted risk-on sentiment, sending
U.S. stock markets to a positive open. While the U.S. dollar
pared some losses, it was weaker against most currencies as
investors worried about a recent disappointing run of economic
news from the United States, Germany and China.
At 9:42 a.m. (1342 GMT) the Canadian dollar was
trading at C$1.0209 to the U.S. dollar, or 97.95 U.S. cents, up
from C$1.0256, or 97.50 U.S. cents, at Wednesday's North
Sutton said testimony by Bank of Canada Governor Mark Carney
on Wednesday was in line with previous statements and the recent
Monetary Policy Report, confirming a tightening bias.
The Bank of Canada is expected to announce a replacement any
day for Carney, who is leaving in June to head the Bank of
England. The bank's current deputy, Tiff Macklem, is widely
expected to take the helm, but analysts say there is always a
chance of a surprise.
The loonie, as the currency is colloquially known, has
finished within a tight 12-point range since the central bank
stuck to its oft-repeated view last week that its next interest
rate move will be a rise.
Canadian government bond prices were mixed. The two-year
bond was down 1 Canadian cent to yield 0.950 percent
and the benchmark 10-year bond was down 14 Canadian
cents to yield 1.740 percent.