(Adds strategist quotes and details throughout; updates prices) * Canadian dollar rises 0.1% against the greenback * Canada adds 83,600 jobs in October * For the week, the loonie was up 2.2% * Canadian bond yields rise across a steeper curve By Fergal Smith TORONTO, Nov 6 (Reuters) - The Canadian dollar strengthened to a two-month high against its U.S. counterpart on Friday, as equity markets held on to this week's sharp gains and domestic data showed the economy added further jobs in October. The loonie was trading 0.1% higher at 1.3030 to the greenback, or 76.75 U.S. cents, having notched its strongest intraday level since Sept. 1 at 1.3019. The loonie was up 2.2% for the week, its biggest advance since June. Wall Street steadied as Democratic challenger Joe Biden edged closer to victory in the U.S. presidential election. Investors have been betting that a potentially split Congress would reduce the risk of tighter regulations on U.S. companies and that the Federal Reserve will keep its loose monetary policy intact. "The Canadian dollar is still very much positively correlated with risk sentiment," said Erik Bregar, head of FX strategy at Exchange Bank of Canada. "If stocks keep going higher ... it is going to make the Canadian dollar go higher." The U.S. dollar fell against a basket of major currencies, while U.S. crude oil futures settled 4.3% lower at $37.14 a barrel. New lockdowns in Europe to halt surging COVID-19 infections threatened to reduce demand for oil, one of Canada's major exports. Statistics Canada reported 83,600 new jobs in October. That was fewer than expected as coronavirus-related shutdowns started to bite, but analysts said the gain reflected welcome signs of resilience in the economy. Separate data showed that Canadian economic activity expanded at a faster-than-expected pace in October. The Ivey Purchasing Managers Index rose to 54.5 in October from 54.3 in September. Investors also digested U.S. jobs data, which showed that employers hired the fewest workers in five months. Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries. The 10-year rose 3.5 basis points to 0.649%. (Reporting by Fergal Smith; Editing by Alex Richardson and Marguerita Choy)
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