TORONTO (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Friday as the central bank of top commodity consumer China moved to calm markets, while Canada’s 10-year yield climbed to a five-week high.

The People’s Bank of China instilled liquidity to calm nerves due to China Evergrande Group’s financial woes. Copper prices rose.

Canada is a major exporter of commodities, including and oil. Copper gained 1.5%. Oil lost some of its gains this week, dropping 1.2% at $71.74/barrel. [MET/L] [O/R]

Canadian dollars traded at 1.2670, 0.1% more than the greenback. This is 78.93 U.S.cents. After trading within a range between 1.2637 and 2.2690. For the week, the was on track to advance 0.1%.

The Federal Reserve’s interest rate decision and the outcome of the Canadian federal elections next week are both important for investors.

Investors from abroad are becoming more concerned that Canada’s Monday election could lead to a deadlock in Ottawa that will hamper Ottawa’s efforts to address the COVID-19 pandemic. This would also slow down the recovery process.

Fitch Ratings reduced its growth projections for Canada’s economy in 2021 to 5%, from 6.6% on Thursday.

Fitch last year stripped Canada of one of its coveted triple-A credit ratings, but S&P Global (NYSE:) Ratings and Moody’s (NYSE:) Investors Service still give Canadian debt the highest rating.

Canadian government bond yields were greater across a steeper curve that reflected the movement in U.S. Treasuries.

After reaching 1.289% on Aug. 11, the 10-year reached its highest point, before dropping slightly to 1.282%. This was an increase of 4.6 basis points.