Oil, one of Canada's major exports, notched its highest level since October 2018 at $72.99 a barrel before settling at $72.15, up three cents on the day.
The yuan's strong rally to three-year highs against the dollar in May prompted a flurry of warnings from policymakers about speculative bets on the currency, prompting a slight pullback and more cautious trade.
An article in the PBOC-backed Financial News on Tuesday quoted analysts as saying that the yuan is approaching a depreciation inflection point, and that it is likely to come under more pressure in the second half.
The country still suffers from chronic unemployment, and we still can't see a strong argument for an accelerated recovery that would propel core inflation beyond the SARB's comfort zone.
"PBOC Governor Yi Gang reaffirmed that the current level of accommodation is appropriate," Win Thin, global head of currency strategy at Brown Brothers Harriman, said in a note.
On the domestic front, investors await April mining and manufacturing figures due later in the day for clues on the health of the economy at the start of the second quarter.
Global markets have "detached from economic fundamentals, vulnerability has increased...it could lead to a rise in global risk aversion and changes to cross-border capital flows," Pan warned.