* Canadian dollar rises 0.3% against the greenback
* Loonie is on track to fall 1.2% for the week
* Canadian industrial capacity use falls in the first
quarter
* Canadian bond yields rise across the curve
TORONTO, June 12 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Friday along with a
rebound in stocks on Wall Street, but after a sharp decline the
day before, the loonie was on course to end its weekly winning
streak.
U.S. stocks rallied a day after their biggest one-day dive
in about three months on fears of a resurgence in coronavirus
infections.
Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
U.S. crude oil futures fell 1.2% to $35.91 a barrel
and were on track for their first weekly fall in seven as
investors weighed the prospect of a second wave of infections
hitting demand.
The Canadian dollar was trading 0.3% higher at 1.3584
to the greenback, or 73.62 U.S. cents. The currency traded in a
range of 1.3527 to 1.3666.
The loonie was down 1.2% for the week, having climbed for
each of the previous three weeks. On Wednesday, it reached its
strongest level in more than three months at 1.3311.
Canadian industries ran at 79.8% of capacity in the first
quarter of 2020, down from an upwardly revised 81.4% in the
fourth quarter, Statistics Canada said.
Separate data from Canada's national statistics agency
showed that producer prices, in a flash estimate, gained 1.2% in
May from April, led by strong gains in meat prices as COVID-19
closed down packing plants.
Canadian government bond yields were higher across the
curve, with the 10-year up 2.1 basis points at
0.541%. Still, the 10-year yield has tumbled nearly 23 basis
from last Friday's peak.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
Our Standards: The Thomson Reuters Trust Principles.