TORONTO: The Canadian dollar firmed against its US counterpart on Tuesday, helped by a rebound in crude oil prices, even as the US dollar firmed against a basket of major currencies.
Oil prices rose in thin trade amid prospects of colder weather in coming weeks, but the outlook for 2016 remained bearish due to slowing global demand and abundant supplies from OPEC members.
US crude prices were up 2.28 percent to $37.65 a barrel, while Brent crude added 2.27 percent to $37.45.
US single-family home prices rose in October at a slightly faster pace than in September and above market expectations. , while US consumer confidence rose more than expected in December.
At 10:07 a.m. EST (1507 GMT), the Canadian dollar was trading at C$1.3856 to the greenback, or 72.17 US cents, after having last traded at C$1.3904, or 71.92 US cents, on Monday, according to Thomson Reuters data.
The currency's strongest level of the session was C$1.3863, while its weakest level was C$1.3941.
The loonie, as Canada's currency is colloquially known, has edged lower since before the Christmas break after oil prices fell more than 3 percent on Monday. The Bank of Canada's official close on Dec. 24 was C$1.3845, or 72.23 US cents.
Against the euro, the Canadian dollar rose to C$1.5153. It hit a nearly four-month low last week at C$1.5320.
Canadian government bond prices were higher across the maturity curve, with the two-year up 1 Canadian cent to yield 0.481 percent and the benchmark 10-year rising 5.5 Canadian cents to yield 1.372 percent.
The Canada-US 10-year spread was 4 basis points wider at -88.6 as US Treasuries unwound Monday's rally.
The domestic data calendar is bare through the holiday-shortened week. Bank of Canada Governor Stephen Poloz will speak in Ottawa on January 7.
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