* Canadian dollar rises 0.2% against the greenback
* Price of U.S. oil increases 1.9%
* Canadian labor productivity falls 2.0% in the fourth
quarter
* Canadian bond yields rise across the curve

TORONTO, March 4 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday as oil
prices rose and ahead of a speech by Federal Reserve Chairman
Jerome Powell that could address the recent jump in bond yields
that has spooked markets.
The loonie was 0.2% higher at 1.2625 to the
greenback, or 79.21 U.S. cents, having traded in a range of
1.2619 to 1.2674.
Since the start of the week, the loonie has gained 0.9%,
helped by data showing stronger-than-expected growth in the
domestic economy and higher prices for oil, one of Canada's
major exports.
U.S. crude prices were up 1.9% to $62.45 a barrel as
OPEC and its allies met to discuss whether to ease production
cuts and after a record jump in U.S. crude oil stocks following
Texan refinery outages.
Canadian dollar forecasts for the coming months have been
raised by strategists, reflecting recent gains for the currency
but also expectations commodity prices will benefit from the
reopening of the global economy, a Reuters poll showed.

The U.S. dollar rose against a basket of major
currencies as a more orderly rise in U.S. Treasury yields lent
support before a speech by Federal Reserve Chairman Jerome
Powell that may determine the trend for global bond markets and
currencies.
Canadian government bond yields were higher across the
curve, with the 10-year up 1.8 basis points at
1.434%. Last Friday, it touched a 13-month high at 1.501%.
Canadian labor productivity fell 2.0% in the fourth quarter,
as hours worked rose faster than business output, Statistics
Canada said.
Canada's international merchandise trade data for January is
due on Friday, expected to show a narrower deficit.

(Reporting by Fergal Smith;
Editing by Bernadette Baum)

Source: Reuters

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