Loonie gains as oil climbs to highest since October
* Canadian dollar rises 0.2% against the greenback
* Price of U.S. oil increases 2.4%
* Canadian bond prices trade mixed across a steeper yield
TORONTO, April 22 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday as oil
prices jumped to fresh multi-month highs, while investors
awaited an interest rate decision this week from the Bank of
At 9:39 a.m. (1339 GMT), the Canadian dollar was
trading 0.2% higher at 1.3365 to the greenback, or 74.82 U.S.
cents. The currency, which fell 0.5% last week, traded in a
range of 1.3355 to 1.3389.
The price of oil, one of Canada's major exports, rose to its
highest since October as the United States was set to announce a
further clampdown on Iranian oil exports, tightening global
supplies. U.S. crude oil futures were up 2.4% at $65.55 a
The Bank of Canada is expected to hold its benchmark
interest rate steady at 1.75% on Wednesday and for the rest of
this year, with calls for the next hike in early 2020 resting on
a knife's edge, a Reuters poll showed, the latest dulling of
rate expectations for a major central bank.
Last week, domestic data showing higher retail sales and a
pick-up in underlying inflation was offset by a Bank of Canada
survey showing softer business sentiment. The decline in
sentiment was due partly to a more uncertain outlook in the
Western Canadian energy sector.
Canada has extended the deadline for a decision on whether
to push forward with the expansion of the Trans Mountain oil
pipeline to June 18 from mid-May, the government said on
Canadian government bond prices were mixed across a steeper
yield curve, with the two-year up 2 Canadian cents to
yield 1.615% and the 10-year falling 8.5 Canadian
cents to yield 1.775%.
Canada's wholesale trade report for February is due on
(Reporting by Fergal Smith
Editing by Chizu Nomiyama) 2019-04-22 15:58:19
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