22.05.201820:53:00UTC+00Canada Wholesale Trade Soars in March, Loonie Gains

The Canadian dollar climbed versus its U.S. counterpart on Tuesday, adding to Monday's rally as oil prices increased and domestic data showed a better-than-expected gain for wholesale trade.

Canadian wholesale trade grew 1.1 percent in March, the biggest month-on-month increase for five months, mostly due to strength in the motor vehicle and parts subsector, according to Statistics Canada.

The rise was the largest since the 2.0 percent gain seen in October 2017. Statscan revised February's decline to 0.4 percent from an initial decline of 0.8 percent.

Excluding the effects of price changes, sales volumes increased 0.8 percent from February.

After three straight monthly declines, the motor vehicles and parts subsector reported a 5.0 percent rise on the back of motor vehicles sales, which climbed to a near record peak.

The price of oil, one of Canada's major exports, was supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply.

U.S. crude prices were up 0.2 percent at $72.39 a barrel.

The Canadian dollar reached C$1.2769 to the greenback, or 78.31 U.S. cents. The loonie, which climbed 0.8 percent on Monday, touched its strongest since Thursday at C$1.2749.

Canadian government bond prices were mixed across a steeper yield curve as trading resumed following Monday's Victoria Day holiday. The two-year rose 6 Canadian cents to yield 2.032 percent and the 10-year fell 5 Canadian cents to yield 2.492 percent. On Thursday, the 10-year yield hit its highest in more than four years at 2.537 percent.