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Canadian dollar posts biggest gain in three months on tariff pause - REUTERS
By Fergal Smith
Summary
- Canadian dollar gains 1.2% against the greenback
- Posts biggest advance since January 20
- Price of U.S. oil settles 4.65% higher
- Two-year yield touches a six-week high
TORONTO, April 9 (Reuters) - The commodity-linked Canadian dollar strengthened by the most in nearly three months against its U.S. counterpart on Wednesday as a sudden reversal by the U.S. on tariffs bolstered the outlook for the global economy.
The loonie was trading 1.2% higher at 1.4095 per U.S. dollar, or 70.95 U.S. cents, its biggest advance since January 20. The currency touched its strongest intraday level since Friday at 1.4076.
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U.S. President Donald Trump said he would temporarily lower new tariffs on many countries, even as he raised them further on imports from China.
"The global growth outlook looks better is the bottom line for the Canadian dollar right now," said Adam Button, chief currency analyst at ForexLive.
"Extreme reciprocal tariffs were likely to create a worldwide recession and now it's clear it was all a negotiating tactic."
Wall Street jumped, clawing back some recent steep declines, and the price of oil, one of Canada's major exports, settled 4.65% higher at $62.35 a barrel.
Canada, which is this year's chair of the G7 developed economies, and Japan have agreed to cooperate to maintain stability in financial markets and the global financial system, Japan's Ministry of Finance said.
Canadian bond yields rose across much of a flatter curve, tracking moves in U.S. Treasuries.
The 2-year was up 13.8 basis points at 2.622% after touching its highest intraday level since
