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The Canadian dollar CADUSD rallied against its U.S. counterpart on Tuesday, recovering from a two-week low, as comments by the chief policymakers at the Bank of Canada and the Federal Reserve calmed investor jitters about the interest rate outlook.

The loonie was trading 0.3% higher at 1.3410 per U.S. dollar, or 74.57 U.S. cents, after trading in a range of 1.3381 to 1.3468.

On Tuesday, it touched its weakest since Jan. 20 at 1.3475 as investors worried that a blockbuster U.S. jobs report on Friday would spur a more hawkish outlook from Fed Chair Jerome Powell than at an interest rate decision last week.

The Canadian dollar “tracked broad-based USD weakness,” said George Davis, chief technical strategist at RBC Capital Markets.

“Powell did not walk back his more dovish commentary from last week’s hike, which was a bit of a letdown to some who expected some changes after Friday’s strong employment report.”

Wall Street rallied and the U.S. dollar lost ground against a basket of major currencies as Powell declined to equate the surprising strength in the job market with an expectation that interest rates would need to be higher than previously thought.

The price of oil, one of Canada’s major exports, settled up 4.1% at $77.14 a barrel on reduced rate hike concerns and recovering demand in China.

Bank of Canada Governor Tiff Macklem also spoke, saying that no further interest rate hikes will be needed if, as expected, the economy stalls and inflation comes down.

Canada posted a C$160 million ($119.1 million) trade deficit in December as energy products dragged down exports and slower economic growth weighed on consumer goods imports.

The Canadian 10-year yield touched its highest since Jan. 11 at 3.109% before dipping slightly to 3.100%, up 4 basis points on the day.