The Canadian dollar CADUSD strengthened against its U.S. counterpart on Tuesday as the price of oil, one of Canada’s major exports, surged on escalating Russia-Ukraine tensions and threats of sanctions.
Oil prices hit their highest since 2014 after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns.
U.S. crude prices rose 3.4 per cent to $94.15 a barrel, while the Canadian dollar was 0.2 per cent higher at 1.2722 to the U.S. dollar, or 78.60 U.S. cents, after trading between 1.2719 and 1.2769.
Still, speculators have cut their bullish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed. As of Feb. 15, net long positions had decreased to 12,170 contracts from 14,886 in the prior week.
Meanwhile, Canada’s parliament has backed Prime Minister Justin Trudeau’s decision to invoke rarely-used emergency powers to end pandemic-related protests that have blocked streets in the capital Ottawa for more than three weeks.
Canadian government bond yields were higher across the curve following Monday’s market holiday. The 10-year rose 4.6 basis points to 1.922 per cent, moving back in sight of the three-year high notched last Wednesday at 1.995 per cent.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.