The Canadian dollar strengthened against the greenback on Tuesday, adding to gains since the start of the year, as oil prices climbed and as hopes of a resolution of the trade dispute between the United States and China boosted equities.
Wall Street rose, fueled by a tentative deal reached by U.S. lawmakers to avoid another partial government shutdown and optimism that the U.S. and China could reach an agreement during their ongoing trade talks.
Resolution of the trade dispute could boost prospects for global growth. That would be helpful for Canada’s economy as a major producer of commodities, including oil.
U.S. crude prices climbed 2.7 percent to $53.80 a barrel on Monday, supported by OPEC-led production cuts, which Saudi Arabia said it would surpass by more than half a million barrels per day, and by U.S. sanctions against Iran and Venezuela.
At 10:20 a.m. (1520 GMT), the Canadian dollar was trading 0.3 percent higher at 1.3258 to the greenback, or 75.43 U.S. cents. The currency traded in a range of 1.3245 to 1.3312.
Gains for the loonie come after Canadian data on Friday showed bumper jobs numbers in January that exceeded market expectations and highlighted the strength of the economy.
The loonie has advanced 2.9 percent since the start of 2019, the best performance among G10 currencies.
Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year fell 2.5 Canadian cents to yield 1.802 percent and the 10-year declined 15 Canadian cents to yield 1.921 percent.