June 23, 2020 / 1:47 PM / 2 months ago

CANADA FX DEBT-Loonie advances to 2-week high on economic recovery hopes

    * Canadian dollar rises 0.1% against the greenback
    * Loonie touches its strongest level since June 11 at 1.3486
    * Price of U.S. oil increases 0.6%
    * Canadian bond yields trade mixed across a flatter curve

    TORONTO, June 23 (Reuters) - The Canadian dollar
strengthened to a near two-week high against its U.S.
counterpart on Tuesday after European economic data bolstered
hopes of a swift recovery from the coronavirus crisis.    
    World stocks rallied as euro zone Purchasing Managers'
Indexes (PMIs) thumped expectations and after assurances from
U.S. President Donald Trump that the U.S.-China trade deal
remained "fully intact."             
    Canada is a major producer of commodities, including oil, so
the loonie tends to be sensitive to the global economic outlook.
U.S. crude oil futures        were up 0.6% at $40.96 a barrel.
            
    At 9:23 a.m. (1323 GMT), the Canadian dollar        was
trading 0.1% higher at 1.3501 to the greenback, or 74.07 U.S.
cents. The currency touched its strongest intraday level since
June 11 at 1.3486.        
    Canada's banking regulator kept the amount of capital the
country's six biggest lenders must hold at a record-low 1% of
risk-weighted assets, and said it was prepared to lower it
further if needed.             
    The United States is planning to re-impose tariffs on
aluminum imports from Canada, Bloomberg reported late on Monday,
citing people familiar with the matter.             
    Canadian government bond yields were mixed across a flatter
curve, with the 2-year            up 1.7 basis points at 0.317%.

 (Reporting by Fergal Smith; Editing by Andrea Ricci)
  
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