TORONTO - The Canadian dollar strengthened slightly against its U.S. counterpart on Tuesday, as the recent move higher in U.S. bond yields lost some momentum and investors turned attention to an interest rate decision by the Bank of Canada.
The U.S. 2-year yield was little changed at 4.030% after climbing more than 50 basis points since September, while the U.S. dollar held near its highest level against a basket of major currencies since Aug. 2. The price of oil, one of Canada's major exports, rose 2.2% to $72.09 a barrel as traders downplayed hopes of a Middle East ceasefire and focused on a tightening global supply and demand balance.
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