TORONTO (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors cheered the potential for new U.S. infrastructure spending and domestic data showed record demand for Canadian securities in April.
Foreign investors bought a record C$49.04 billion in Canadian securities in April, all in debt securities, following a revised C$9.82 billion total sale in March, Statistics Canada said.
Canada runs a current account deficit so its economy tends to benefit from foreign creditor inflows.
Global shares <.WORLD> climbed after a report of a new $1 trillion U.S. infrastructure programme and as a record jump in U.S. retail sales in May supported the view that the worst of the coronavirus economic impact was over.
The price of oil, one of Canada's major exports, rose after the IEA increased its oil demand forecast for 2020 and as record supply cuts provided support. U.S. crude oil futures were up 3.6% at $38.44 a barrel. The Canadian dollar was trading 0.2% higher at 1.3540 to the greenback, or 73.86 U.S. cents. The currency, which on Monday hit a two-week low at 1.3685, traded in a range of 1.3504 to 1.3597.
New Bank of Canada Governor Tiff Macklem and Senior Deputy Carolyn Wilkins are due to speak to the House of Commons finance committee at 3:00 p.m. (1900 GMT).
Investors will be looking for any change in tone from the central bank on Macklem's watch. Earlier this month, the bank said the impact of the coronavirus pandemic on the global economy appeared to have peaked and the Canadian economy seemed to have avoided worst-case projections.
Canadian government bond yields were higher across a steeper curve, with the 10-year yield up 5.1 basis points at 0.570%.
(Reporting by Fergal Smith; Editing by Alistair Bell)