May 4, 2020 / 8:29 PM / 3 months ago

CANADA FX DEBT-Canadian dollar recovers from 11-day low as oil rallies

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    * Canadian dollar trades near flat against the greenback
    * Loonie hits an 11-day low intraday at 1.4151
    * Price of U.S. oil increases 7.7%
    * Canadian bond yields trade mixed across a steeper curve

    By Fergal Smith
    TORONTO, May 4 (Reuters) - The Canadian dollar was little
changed against its broadly stronger U.S. counterpart on Monday,
with the loonie rebounding from an earlier 11-day low as oil
rallied.    
     The U.S. dollar        was bolstered by safe-haven flows as
risk appetite waned amid fears that last year's U.S.-China
dispute will be reignited, this time over the novel coronavirus.
            
    "Despite a stronger U.S. dollar today versus most major
currencies, the Canadian dollar stands out as the exception,"
said Michael Goshko, corporate risk manager at Western Union
Business Solutions. "The currency is being helped by oil's
recent strength."    
    U.S. crude oil futures        gained 7.7% to $21.30 a barrel
as more countries announced they would begin easing coronavirus
lockdowns and as crude supply cuts by the world's top producing
nations and companies take hold.             
    The major Canadian province of Quebec, worst hit by the
coronavirus, gradually began reopening its economy on Monday but
pushed back plans for a restart in the city of Montreal, citing
health concerns.              
    The Canadian dollar        was trading nearly unchanged at
1.4087 to the greenback, or 70.99 U.S. cents. The currency
touched its weakest intraday level since April 23 at 1.4151.
    Canada's central bank will do its part to help bridge the
economy through the coronavirus outbreak while standing ready to
adjust its asset purchases to support a lasting recovery, Bank
of Canada Senior Deputy Governor Carolyn Wilkins said.
             
    Wilkins was widely seen as the front-runner to become the
next governor of the central bank but lost out to Tiff Macklem,
a former senior deputy governor, when the appointment was
announced on Friday.                 
    Canadian government bond yields were mixed across a steeper
yield curve on Monday, with the 10-year             up 4.9 basis
points at 0.574%.
    Canada's trade report for March is due on Tuesday, while the
April employment report is due on Friday.

 (Reporting by Fergal Smith
Editing by Nick Zieminski and Jonathan Oatis)
  
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