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Canadian dollar gains 0.4% against the greenback

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For the week, the currency heads for a 0.1% decline

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Wholesale trade rises 1.2% in January

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Bond yields ease across the curve

By Fergal Smith

TORONTO, March 14 (Reuters) - The Canadian dollar

strengthened against its U.S. counterpart on Friday, clawing

back much of its weekly decline, as equity markets rebounded and

Mark Carney was sworn in as the country's prime minister.

The loonie was trading 0.4% higher at 1.4385 per U.S.

dollar, or 69.52 U.S. cents, after trading in a range of 1.4371

to 1.4447.

"It's a bit higher, mostly because U.S. equities are seeing

a slight rebound," said Howard Du, an FX Strategist at BofA

Securities.

U.S. stocks rose after a broad selloff on Wall Street

earlier this week as investors assessed the fallout of tariff

policies on economic growth, while new data signaled

deteriorating consumer sentiment and a surge in inflation

expectations.

Canada is a major producer of commodities, including oil, so

the loonie tends to be sensitive to the signal stocks send about

the economic outlook.

The swearing in of Carney as Canada's prime minister puts a

former central banker in charge of the country and its economy.

"The market sees it as modestly positive for Canada and the

Canadian dollar," Du said. "But overall it's still going to be

the global macro dynamic, tariffs, that drive dollar-CAD."

For the week, the currency was down 0.1% as the trade war

between the U.S. and other countries, including Canada, heated

up and after the Bank of Canada cut its benchmark interest rate

further to support the economy.

Domestic data showed that wholesale trade grew 1.2% in January

from December and that manufacturing sales were up 1.7%.

The price of oil rose 0.8% to $67.06 a barrel as investors

weighed the diminishing prospects of a quick end to the Ukraine

war.

Canadian bond yields edged lower across the curve even as

U.S. Treasury yields climbed. The 10-year was down

1.1 basis points at 3.040%.