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Loonie rises 0.3% against the greenback
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Price of U.S. oil settles 2.2% higher
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Canadian bond yields rise across curve
(Adds dealer quotes and details throughout; updates prices)
By Fergal Smith
TORONTO, April 11 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Tuesday, with the
currency recovering from a 10-day low as oil prices rose and
investors awaited a Bank of Canada interest rate decision this
week.
The loonie was up 0.3% at 1.3470 to the greenback, or
74.24 U.S. cents. On Monday, it touched its weakest intraday
level since March 31 at 1.3553.
"We've seen the Canadian dollar strengthen slightly on the
back of oil," said Darren Richardson, chief operating officer at
Richardson International Currency Exchange Inc.
"The market is really waiting for U.S. inflation figures and
the Bank of Canada tomorrow. That's the big market mover."
The Canadian central bank is expected to take in stride
surprising recent economic strength and leave its benchmark rate
unchanged at a 15-year high of 4.50% at its policy announcement
on Wednesday, betting that activity will cool as higher
borrowing costs sink in.
Last month, the BoC paused its tightening campaign after
eight consecutive rate hikes.
The price of oil , one of Canada's major exports,
settled 2.2% higher at $81.53 a barrel amid hopes that the
Federal Reserve might also ease up on its policy tightening.
U.S. consumer price index data for March, due on Wednesday,
could offer clues on the Fed policy outlook.
Canadian government bond yields were up across the curve, tracking the move in U.S. Treasuries. The 10-year touched its highest level since April 3 at 2.951% before dipping to 2.924%, up 2.1 basis points on the day. (Reporting by Fergal Smith; Editing by Paul Simao and Alistair Bell)
