TORONTO: The Canadian dollar strengthened to a three-week high against its US counterpart on Wednesday as oil edged higher and the greenback suffered broad-based losses.
The US dollar fell against a basket of major currencies as investors re-evaluated whether the Federal Reserve will raise interest rates this year.
Oil rose even as analysts mostly expected no impact on actual supplies from talk of a potential producer meeting to discuss propping up prices. US crude prices were up 0.37 percent to $42.93 a barrel.
At 9:23 a.m. EDT (1323 GMT), the Canadian dollar was trading at C$1.3016 to the greenback, or 76.83 US cents, much stronger than Tuesday's close of C$1.3123, or 76.20 US cents.
The currency has regained all the ground it lost on Friday after a slump in domestic jobs and a record-wide trade deficit contrasted with a robust US jobs report.
Its weakest level of the session was C$1.3122, while it touched its strongest since July 19 at C$1.2990.
Canadian government bond prices were higher across the maturity curve in sympathy with US Treasuries. The two-year bond firmed 1.5 Canadian cents to yield 0.500 percent and the benchmark 10-year climbed 20 Canadian cents to yield 0.994 percent.
The 10-year yield touched its lowest since July 11 at 0.965 percent.
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