* Canadian dollar rises 0.2% against the greenback
* Price of U.S. oil decreases 2.3%
* Canada's 10-year yield hits a 2-week low at 1.304
By Fergal Smith
TORONTO, Sept 24 (Reuters) - The Canadian dollar strengthened to its highest in more than one week against its U.S. counterpart on Tuesday, as rising support among Democratic lawmakers to pursue impeachment of U.S. President Donald Trump weighed on the greenback.
At 3:45 p.m. (1945 GMT), the Canadian dollar CAD=D4 was trading 0.2% higher at 1.3238 to the greenback, or 75.54 U.S. cents. The currency touched its strongest intraday level since Sept. 16 at 1.3234.
"CAD has strengthened moderately on the day and that is in line with pretty much every other G10 currency," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "It appears that the biggest driver on the day is U.S. political moves, with the market interpreting rising likelihood of Trump impeachment as U.S. dollar negative."
Adding to pressure on the U.S. dollar .DXY was data showing that U.S. consumer confidence fell in September, which raised worries about the U.S. economy. the price of oil, one of Canada's major exports, fell after Trump rekindled fears that the Sino-American trade conflict, which has crimped energy demand, is far from over. U.S. crude oil futures CLc1 settled 2.3% lower at $57.29 a barrel. gain for the loonie came after stronger-than-expected wholesale trade data on Monday supported bets that the Bank of Canada would leave interest rates unchanged this year.
Chances of a rate cut by December have fallen to about 30% from more than 90% earlier this month, data from the overnight index swaps market showed. BOCWATCH
Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 8 Canadian cents to yield 1.522% and the 10-year CA10YT=RR was up 67 Canadian cents to yield 1.305%.
The 10-year yield hit its lowest intraday level since Sept. 9 at 1.304%.