Canadian dollar firms as US infrastructure bill makes progress

TORONTO: The Canadian dollar edged higher against its US counterpart on Monday as the US Senate came closestrong textr to passing a $1 trillion infrastructure package, but gains were capped by additional pressure on oil prices.

The US Senate on Sunday took further steps toward passing a bipartisan infrastructure bill that includes the largest US investment in roads and bridges in decades.

Canada sends about 75% of its exports to the United States, including oil.

US crude prices were down 3.8% at $65.71 a barrel, extending last week's steep losses, on concerns that new coronavirus-related restrictions in Asia could slow a global recovery in fuel demand.

Oil slides 4% on China virus curbs and strong dollar

A United Nations panel's dire warning on climate change added to the gloomy mood.

The Canadian dollar was trading 0.2% higher at 1.2533 to the greenback, or 79.79 US cents, clawing back some of last week's decline. The currency traded in a range of 1.2532 to 1.2583.

Speculators have raised their bullish bets on the Canadian dollar for the first time in five weeks, data from the US Commodity Futures Trading Commission showed on Friday. As of Aug. 3, net long positions had increased to 7,460 contracts from 5,374 in the prior week.

Investors were still assessing whether Friday's strong US payrolls report would take the Federal Reserve a step nearer to winding back its stimulus.

TSX falls off record high as oil slump hits energy stocks

Canada also released jobs data on Friday. The economy added fewer jobs than expected although most of the gains were in full-time work and hours worked climbed.

Canadian government bond yields were lower across much of a flatter curve. The 10-year fell 2.3 basis points to 1.217%, pulling back from its highest since July 16 earlier in the day at 1.257%.