TORONTO (Reuters) - The Canadian dollar climbed to its highest in more than five months against its broadly weaker U.S. counterpart on Wednesday as oil prices rose, but some gains for the loonie were given back after domestic data showing a wider trade deficit.
The loonie
Canada's trade deficit unexpectedly ballooned to C$3.19 billion in June on a surge in motor vehicle and parts imports as the economy started to reopen, Statistics Canada data indicated. Analysts had forecast a deficit of C$0.90 billion.
The price of one of Canada's major exports, oil, rose to its highest since early March on data showing a big drop in U.S. crude inventories.
U.S. crude oil futures (CLc1) were up 3.4% at $43.12 a barrel, while the U.S. dollar (DXY) extended its recent decline as euro zone data reassured and a U.S. coronavirus relief package remained stalled in Congress.
Canadian government bond yields were higher across a steeper curve, with the 10-year (CA10YT=RR) up 4.5 basis points at 0.480%. Last Friday, it hit its lowest intraday level in nearly five months at 0.412%.
Canada's employment report for July is due on Friday.