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The Canadian dollar strengthened against its U.S. counterpart on Tuesday as the currency rebounded from a near three-week low the day before, supported by higher global stock prices and the ebbing threat from a collapse of the Turkish lira.

At 3:25 p.m. EDT, the Canadian dollar was trading 0.4 per cent higher at $1.3079 to the greenback, or 76.46 U.S. cents. The currency traded in a range of $1.3071 to $1.3135.

On Monday, the loonie touched its weakest since July 24 at $1.3179.

“It appears to be more of a relief rally than anything (Canadian) specific ... reversing some of yesterday’s moves,” said Eric Theoret, currency strategist at Scotiabank.

World equities markets regained their footing as Turkey’s currency rebounded about 6 per cent against the greenback and reassuring German economic data that offset signs of slowing growth in China.

Investors have worried that a crisis in Turkey could spread to other emerging market countries. Canada exports many commodities and runs a current account deficit so its economy could be hurt if the flow of trade or capital slows.

Canada said it will consider a safeguard action on seven steel products to protect domestic producers from imports since the United States imposed tariffs against its major trade partner in March.

The price of oil, one of Canada’s major exports fell. U.S. crude oil futures settled 0.2 per cent lower at $67.04 a barrel. Canadian home prices rose in July from June on broad-based gains in most parts of Canada, but the price increases were small compared with historical averages for the month, the Teranet-National Bank Composite House Price Index data showed on Tuesday.

Canada’s manufacturing sales data for June is due on Thursday and the July inflation report is set for Friday.

Canadian government bond prices edged lower across a steeper yield curve in sympathy with U.S. Treasuries as demand faded for safe-haven assets such as government bonds.

The two-year fell 1 cent to yield 2.116 per cent and the 10-year declined 9 cents to yield 2.313 per cent.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 29/03/24 9:19am EDT.

SymbolName% changeLast
CADUSD-FX
Canadian Dollar/U.S. Dollar
-0.02%0.73836
USDCAD-FX
U.S. Dollar/Canadian Dollar
+0.03%1.35447

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