April 23, 2020 / 1:39 PM / a month ago

CANADA FX DEBT-Canadian dollar gains along with ongoing rebound in oil

    * Canadian dollar rises 0.5% against the greenback
    * Loonie trades in a range of 1.4081 to 1.4200
    * Price of U.S. oil increases by nearly 20%
    * Canadian bond yields trade mixed across a flatter curve

    TORONTO, April 23 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday as the
prospect of further economic stimulus and higher prices for
crude oil, one of Canada's major exports, boosted investor
sentiment.
    At 9:24 a.m. (1324 GMT), the Canadian dollar          was
trading 0.5% higher at 1.4083 to the greenback, or 71.01 U.S.
cents. The currency, which on Tuesday hit a near three-week low
at 1.4263, traded in a range of 1.4081 to 1.4200.
    World stocks          inched up on hopes for a massive joint
stimulus fund to support the European Union during the
coronavirus crisis and on an ongoing rebound in oil prices,
while investors brushed off a slew of awful economic data.
            
    U.S. crude oil futures        were up nearly 20% at $16.53 a
barrel, spurred by the promise of more government stimulus, as
well as rising tensions in the Middle East and output cuts by
producing nations to tackle oversupply.             
    Canada's export credit agency on Wednesday said it would
backstop loans to hard-hit oil and gas producers, in the latest
move by Ottawa to free up credit for the struggling energy
industry.             
    Ottawa is rolling out more than C$200 billion in measures to
support Canada's economy, while the Bank of Canada has slashed
interest rates by 150 basis points since March and begun buying
Government of Canada bonds.
    Canadian government bond yields were mixed across a flatter
curve on Thursday. The 10-year             eased 1.6 basis
points to 0.600%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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