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Canadian dollar weakens 0.1% against the greenback
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Touches its weakest since June 1 at 1.3552
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Price of U.S. oil settles 1.3% higher
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10-year yield touches a near 15-year high
By Fergal Smith
TORONTO, Aug 17 (Reuters) - The Canadian dollar weakened to its lowest level in more than two months against its U.S. counterpart on Thursday as the prospect of U.S. interest rates remaining at a high level for longer than previously expected bolstered the greenback.
The loonie was trading 0.1% lower at 1.3545 to the greenback, or 73.83 U.S. cents, after touching its weakest level since June 1 at 1.3552.
"The (U.S.) dollar is king right now, following U.S. yields higher," said Michael Goshko, senior market analyst at Convera Canada.
Upbeat U.S. economic data kept alive fears of interest rates remaining higher for longer, supporting the U.S. dollar and weighing on Wall Street as well as risk-sensitive currencies such as the loonie.
"The whole higher for longer thing is really getting a big push," Goshko said. "We have probably seen a lot more signs of weakness in the labour market and slowing in Canada than we are south of the border."
Data earlier this month showed that the Canadian economy unexpectedly lost jobs in July.
One positive for the loonie was a rally in the price of oil, one of Canada's major exports. U.S. crude oil futures settled 1.3% higher at $80.39 a barrel as China's central bank sought to bolster the property market and wider economy.
Canadian government bond yields were mixed across the curve. The 10-year touched its highest level since November 2008 at 3.828% before pulling back to 3.779%, up 1 basis point on the day. (Reporting by Fergal Smith; editing by Grant McCool)
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