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CANADA FX DEBT-C$ climbs to 3-month high ahead of BoC rate decision this week

    * Canadian dollar rises 0.3% against the greenback
    * Loonie touches its strongest intraday since March 10 at
1.3674
    * Price of U.S. oil decreases 1.3%
    * Canada's 5-year yield increases 1.4 basis points

    TORONTO, June 1 (Reuters) - The Canadian dollar strengthened
to a near three-month high against the greenback on Monday as
optimism on the reopening of economies supported risk appetite
and ahead of an interest rate decision this week by the Bank of
Canada.
    World stocks          shrugged off worries over riots in the
U.S. and unease over Washington's power struggle with Beijing to
add to their rally since March.    
    The price of oil       , one of Canada's major exports, fell
but held near its highest since March as investors weighed
reports that OPEC and Russia were closer to a deal on extending
oil cuts. U.S. crude        prices were down 1.3% at $35.03 a
barrel.             
    The Canadian dollar        was trading 0.3% higher at 1.3724
to the greenback, or 72.87 U.S. cents. The currency touched its
strongest intraday level since March 10 at 1.3674.    
    Bleak domestic GDP data on Friday has been taken in stride
by the market, with economists turning attention to how fast the
economy can recover from the coronavirus crisis and the
potential level of fiscal and monetary policy support.
            
    A Bank of Canada interest rate decision is due on Wednesday,
when Tiff Macklem will take over as governor. The central bank
will hold interest rates at a record low of 0.25% until at least
the end of next year, a Reuters poll showed.             
    Speculators have pared their bearish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
showed on Friday. As of May 26, net short positions had fallen
to 33,954 contracts from 35,056 in the prior week.    
    Canada's 5-year yield            rose 1.4 basis points to
0.410% on Monday along with higher yields for U.S. government
bonds.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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