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Canadian dollar near flat as calm returns to global markets

Published 2019-03-26, 09:40 a/m
Updated 2019-03-26, 09:50 a/m
© Reuters.  Canadian dollar near flat as calm returns to global markets

* Loonie trades in a range of 1.3380 to 1.3412 to the U.S. dollar

* Price of U.S. oil rises 2.2 percent

* Bond prices fall across a steeper yield curve

TORONTO, March 26 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday as stocks and oil prices rose, with the loonie steadying after it was pressured in the last three sessions by worries about the economic outlook.

Calm returned to global markets as a steadier day for Europe and Asia's bourses and a tick higher in benchmark bond yields helped ease nerves after a jarring few days dominated by recession worries. price of oil, one of Canada's major exports, rose as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown. U.S. crude oil futures CLc1 were up 2.2 percent at $60.11 a barrel. 9:15 a.m. (1315 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3403 to the greenback, or 74.61 U.S. cents. The currency, which touched its lowest in more than two weeks at 1.3445 on Monday, traded in a range of 1.3380 to 1.3412.

The loonie steadied despite news that China has expanded its ban on Canadian canola imports to include shipments from Viterra Inc VILC.UL . The ban is the latest development in a wider trade dispute between the two countries. government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 5.5 Canadian cents to yield 1.512 percent and the 10-year CA10YT=RR was down 25 Canadian cents to yield 1.578 percent.

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On Monday, the 10-year yield hit its lowest since June 2017 at 1.532 percent.

Canada's trade report for January is due on Wednesday, while January gross domestic product data is due on Friday.

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