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C$ touches its strongest since March 3 at 1.3572
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Price of U.S. oil increases 1.4%
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Canadian five-year yield rises 4.3 basis points
By Fergal Smith TORONTO, March 29 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Wednesday, holding on to its recent gains, as fears eased over a global banking crisis, bolstering risk appetite and as investors awaited clues on the Bank of Canada policy outlook. Equity markets globally rose and the price of oil, one of Canada's major exports, added to this week's rally as worries receded that financial stress could lead to a credit crunch that would be too much for the global economy to handle. U.S. crude oil futures climbed 1.4% to $74.19 a barrel, while the Canadian dollar was trading nearly unchanged at 1.3595 to the U.S. currency, or 73.56 U.S. cents, after touching its strongest since March 3 at 1.3572. Tuesday's close for the USD-CAD pairing below "congestive support" at 1.3659 has opened up a move to the next support level at 1.3534, Adam Cole, chief currency strategist at RBC Europe Limited, said in a technical note. Bank of Canada Deputy Governor Toni Gravelle is due to speak on market liquidity measures taken during the COVID-19 crisis. The central bank will release his prepared remarks at 12:30 ET (16:30 GMT). Money markets are betting that the Canadian central bank will shift to cutting interest rates this year after moving to pause its tightening campaign earlier in March. On Tuesday, Canada sought to close competitive gaps with the United States in a budget aimed at attracting investment in the low-carbon economy. The government said it will cease issuing 3-year bonds and will undertake market consultations on a proposal to consolidate the sale of Canada Mortgage Bonds within the government's regular borrowing program. Canadian government bond yields were higher across much of the curve, tracking the move in U.S. Treasuries. The five-year was up 4.3 basis points at 3.072%. (Reporting by Fergal Smith; Editing by Sharon Singleton)
