*
Canadian dollar strengthens 0.3% against the greenback
*
Trades in a range of 1.3701 to 1.3745
*
Price of U.S. oil rises 1.8%
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Canadian bond yields rise across curve
TORONTO, March 27 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday as worries
about the global banking sector showed signs of easing, with the
currency extending its recovery from a nine-day low that it hit
on Friday.
Equity markets globally and yields on safe-haven
U.S. Treasuries rose after First Citizens BancShares helped calm unsettled markets by saying that it would take the
deposits and loans of failed Silicon Valley Bank .
Investors have worried that stress in the banking sector
could lead to a credit crunch, worsening the economic outlook.
Canada is a major exporter of commodities, including oil, so
the loonie tends to be sensitive to the outlook for the global
economy.
Oil prices rose on the moves to contain a potential banking
crisis that could have hit demand for crude and after a halt to
oil exports from Iraqi Kurdistan via Turkey. U.S. crude prices were up 1.8% at $70.53 a barrel.
The Canadian dollar was trading 0.3% higher at 1.3705
to the greenback, or 72.97 U.S. cents after moving in a range of
1.3701 to 1.3745. On Friday, it touched its weakest intraday
level since March 15 at 1.3804.
Investors were awaiting the release of Canada's federal
budget on Tuesday and a speech by Bank of Canada Deputy Governor
Toni Gravelle on Wednesday.
Money markets are betting that the central bank will shift
to cutting interest rates this year after pausing its tightening
campaign earlier this month. Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries. The 10-year rose 8.5 basis points to 2.835%.
(Reporting by Fergal Smith; Editing by Andrea Ricci)
