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The Canadian dollar CADUSD strengthened to its highest level in 11 days against its U.S. counterpart on Monday, clawing back some of this month’s decline, as oil prices rose and the greenback broadly lost ground.

The price of oil, one of Canada’s major exports, rose for a second day as investors waited for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.

U.S. crude oil futures settled 1.8% higher at $109.57 a barrel.

“Oil is still in a very tight market and the recent selloff was probably overdone,” said Edward Moya, senior market analyst at OANDA in New York.

“It’s been falling fairly quickly as the global recessionary calls were growing and you were seeing some risks of demand destruction,” Moya added. “Whenever oil is vulnerable to a massive move lower, that always weigh on the Canadian dollar.”

The U.S. dollar lost ground against a basket of major currencies as softening inflation expectations prompted a reassessment of the prospects for aggressive interest rate hikes.

The Canadian dollar was trading 0.1% higher at 1.2875 per greenback, or 77.67 U.S. cents, after touching its strongest level since June 16 at 1.2865.

Still, it was on track to decline 1.8% for the month, after global financial markets were buffeted by recession fears.

Canadian Finance Minister Chrystia Freeland on Sunday said the economy still has a path to a “soft landing,” where it could stabilize economically after the blow by the COVID-19 pandemic, without facing a severe recession that many fear.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year

rose 5.5 basis points to 3.388%, after touching last Thursday its lowest level in nearly two weeks at 3.224%.

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