- Oops!Something went wrong.Please try again later.
* Canadian dollar rises 0.2% against the greenback * Canada posts a trade surplus of C$3.2 billion in June * Price of U.S. oil increases 0.2% * Canadian bond yields rise across the curve TORONTO, Aug 5 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as oil prices rose and data showed Canada's exports increasing sharply in June, with the currency clawing back some of its decline over the past week. The loonie was trading 0.2% higher at 1.2514 to the greenback, or 79.91 U.S. cents, after trading in a range of 1.2494 to 1.2547. Since last Thursday, the loonie has weakened 0.6% along with lower prices for oil, one of Canada's major exports. U.S. crude prices were up 0.2% at $68.29 a barrel, but stayed near a two-week low as concern that surging COVID-19 cases in some countries would reduce demand offset the market impact of rising Middle East tensions. Canada unexpectedly posted a trade surplus of C$3.2 billion in June, the largest in almost 13 years, as exports jumped 8.7% on higher shipments of oil and autos, Statistics Canada data indicated. Canada's jobs report for July is due on Friday which can offer clues on the Bank of Canada policy outlook. Analysts expect the data to show employment rising by 177,500 as pandemic-related economic restrictions eased. Analysts have raised their forecasts for the Canadian dollar over the coming year, expecting the Bank of Canada to begin interest rate hikes before the Federal Reserve and the domestic economy to benefit from a high rate of COVID-19 vaccinations. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year rose 1.3 basis points to 1.148%, after hitting on Wednesday its lowest intraday level in nearly six months at 1.078%. (Reporting by Fergal Smith; editing by Barbara Lewis)