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TORONTO — The Canadian dollar on Monday

strengthened to its highest level in nearly four weeks against

its U.S. counterpart as higher oil prices played a bigger role

in driving the currency than a selloff on Wall Street.

The Canadian dollar was last trading 0.5% higher at

1.2578 to the greenback, or 79.50 U.S. cents, after touching its

strongest level since Sept. 7 at 1.2557.

The jump in oil prices is “taking precedence today over U.S.

equities and front-end (bond) yields,” said Simon Harvey, senior

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FX market analyst for Monex Europe and Monex Canada.

Canada’s commodity-linked currency often moves in the same

direction as Wall Street because of the signal stocks send about

global economic prospects.

Oil rose to a three-year peak after OPEC+ confirmed it

would stick to its current output policy as demand for petroleum

products rebounds across the world.

U.S. crude oil futures settled 2.3% higher at $77.62

a barrel, while Wall Street’s main indexes tumbled as investors

shifted out of technology stocks in the face of rising U.S.

Treasury yields.

The U.S. dollar fell against a basket of major

currencies, pulling back from the 1-year high hit last week, as

traders looked to U.S. jobs data at the end of the week for

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clues to the Federal Reserve’s next move.

The Canadian employment report is also due on Friday, which

a Reuters poll forecast will show 65,000 jobs added last month.

The data could give the loonie another boost, Harvey said.

“There are still (economic) tailwinds to provide the Canadian

reading with a positive surprise.”

Canadian government bond yields were higher across a steeper

curve, with the 10-year up 2.8 basis points at

1.499%. On Friday, Canada’s 10-year yield moved above its U.S.

equivalent for the first time since April last year.

(Reporting by Fergal Smith; Editing by Emelia Sithole-Matarise

and Sandra Maler)