(Adds strategist quote and details throughout; updates prices)
* Canadian dollar rises 0.3% against the greenback
* Loonie touches its weakest since last Wednesday at 1.2628
* Price of U.S. oil settles 0.8% higher
* Canadian bond yields ease across the curve
By Fergal Smith
TORONTO, April 13 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Tuesday as oil rose
and the greenback broadly declined, with the loonie rebounding
from an earlier six-day low.
The U.S. dollar fell against a basket of major
currencies after data showed inflation making strong gains in
March, though the rise was not expected to alter the Federal
Reserve's commitment to keeping interest rates at rock-bottom
levels for years to come.
"It is more about greenback weakness as opposed to loonie
strength," said Erik Nelson, a currency strategist at Wells
Fargo.
The S&P 500 closed at another record high as
investors shook off concerns about the halt in Johnson &
Johnson's COVID-19 vaccine rollout, while the price of
oil, one of Canada's major exports, was supported by strong
Chinese import data.
U.S. crude prices settled up 0.8% at $60.18 a barrel.
The Canadian dollar was trading 0.3% higher at 1.2529
to the greenback, or 79.81 U.S. cents, having touched its
weakest intraday level since last Wednesday at 1.2628.
Canada said it was talking to Johnson & Johnson about
reports that its vaccine might cause rare blood clots, while
Prime Minister Justin Trudeau said a surge in dangerous virus
variants could threaten progress made so far.
Ottawa ran a budget deficit estimated at 17.5% of GDP in
2020-21 to support the economy during the coronavirus crisis. It
is due next Monday to table its budget for the current fiscal
year, which began this month.
Canadian government bond yields eased across the curve in
sympathy with U.S. Treasuries. The 10-year fell
about half a basis point to 1.504%.
(Reporting by Fergal Smith
Editing by Alistair Bell and Jonathan Oatis)
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