C$ strengthens on higher oil, prospects for Keystone XL
TORONTO (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday, helped by higher oil prices and the prospect of advanced construction of the Keystone XL pipeline.
U.S. President Donald Trump intends to sign two executive actions on Tuesday that would advance construction of Keystone XL and Dakota Access pipelines, an administration official told Reuters.
TransCanada Corp's proposed Keystone XL pipeline had been rejected by the Obama administration because of environmental concerns.
U.S. crude CLc1 prices were up 0.80 percent at $53.17 a barrel, helped by news of lower production by OPEC and other key exporters. [O/R]
Oil is one of Canada's major exports.
At 9:38 a.m. ET (1438 GMT), the Canadian dollar CAD=D4 was trading at C$1.3201 to the greenback, or 75.75 U.S. cents, stronger than Monday's close of C$1.3267, or 75.37 U.S. cents.
The weakest level of the session was C$1.3299, while the loonie touched its strongest since Jan. 18 at C$1.3200.
The U.S. dollar .DXY recovered from a dip on fears that Trump's focus on protectionism over fiscal stimulus suggested his administration might be content to gain a competitive advantage through a weaker currency.
Trump's push to renegotiate the North American Free Trade Agreement threatens the Canadian economy. Canada sends more than 75 percent of its exports to the United States. Continued...