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The Canadian dollar CADUSD The Canadian dollar strengthened to a two-week high against its broadly stronger U.S. counterpart on Tuesday as higher oil prices offset a setback to investor sentiment.

The loonie was trading 0.1% higher at 1.2865 to the greenback, or 77.73 U.S. cents, after touching its strongest since June 13 at 1.2820.

It was the only G10 currency to gain ground against the safe-haven U.S. dollar. Earlier in June, it touched a 19-month low at 1.3078.

The bounce in the Canadian dollar is not all that surprising given that “oil prices are still enjoying quite a bit of momentum,” said Stephen Brown, senior Canada economist at Capital Economics.

The price of oil, one of Canada’s major exports, settled 2% higher at $111.76 a barrel as major producers Saudi Arabia and the United Arab Emirates looked unlikely to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.

Wall Street slid as weak U.S. consumer confidence data dampened investor optimism and stoked recession fears.

Canada’s GDP data for April, due to be released on Thursday, could offer clues on the strength of the domestic economy.

With inflation soaring, money markets expect the Bank of Canada to raise interest rates by three-quarters of a percentage point at its next policy decision on July 13, which would be its biggest hike in 24 years.

The BoC is likely to keep pace with tightening by the Federal Reserve over the next few months but could then become more cautious should the slowdown in the domestic housing market accelerate, Brown said.

Canadian government bond yields were mixed across the curve, tracking moves in U.S. Treasuries. The 10-year was up less than half a basis point at 3.385%, after touching earlier this month a 12-year high at 3.664%.

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