Canadian dollar holds near multi-week high as oil rallies

TORONTO: The Canadian dollar was little changed against its US counterpart on Tuesday, holding near its highest level in over five weeks as oil prices climbed and investors awaited comments from Bank of Canada Governor Tiff Macklem.

The price of oil, one of Canada's major exports, rose as OPEC, Russia and their allies will stick to plans to raise output slightly from May 1, suggesting it does not see a lasting impact on demand from India's coronavirus crisis.

US crude prices settled 1.7% higher at $62.94 a barrel, while the Canadian dollar was trading nearly unchanged at 1.2401 to the greenback, or 80.64 US cents. It traded in a range of 1.2388 to 1.2418.

On Monday, the loonie touched its strongest intraday level since March 18 at 1.2379, supported by the Bank of Canada's more hawkish stance.

Macklem is due to appear before the House of Commons Standing Committee on Finance at 4:00 p.m. ET (2000 GMT).

In contrast, the US Federal Reserve is not expected to change its policy guidance at the end of its two-day meeting on Wednesday.

The province of Quebec reported Canada's first death of a patient from a rare blood clot condition after receiving the AstraZeneca COVID-19 vaccine.

Ottawa has lined up billions in new spending to provide emergency support during a virulent third wave of COVID-19.

Still, S&P Global Ratings on Monday affirmed its AAA rating for Canada, saying it expects the economy to post a strong recovery in 2021.

Canadian government bond yields were higher across a steeper curve, with the 10-year up 2.3 basis points at 1.553%.

Canadian retail sales data for February is due on Wednesday, while GDP data for the same month is due on Friday.