TORONTO (Reuters) - The Canadian dollar strengthened to a near two-week high against its U.S. counterpart on Tuesday as plans to ease coronavirus lockdowns in a number of major economies supported risk appetite.
World stocks <.WORLD> rose to their highest in almost six weeks as investors viewed the peaks of coronavirus infections in Asia, Europe and North America as behind them.
Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.
U.S. crude (CLc1) prices were up 5.2% at $13.45 a barrel as optimism about the easing of coronavirus-related restrictions reassured markets.
At 10:06 a.m. (1406 GMT), the Canadian dollar
Still, reopening of Canada's economy could be slow. The government of Ontario, Canada's most-populous province and industrial powerhouse, said on Monday it would not begin lifting restrictions to fight the coronavirus for weeks to come despite pressure from businesses to restart the economy.
Canadian government bond yields were mixed across a flatter curve. The 10-year yield (CA10YT=RR) fell 4 basis points to 0.584%.
Canada's GDP report for February is due on Thursday but could be too dated to guide expectations for further easing measures from the Bank of Canada.