Canadian dollar outperforms G10 peers as oil prices jump

- The commodity-linked Canadian dollar strengthened to a ‌three-week high against its U.S. counterpart on Friday as oil prices jumped and U.S. employment data fell short of expectations. The loonie was trading 0.7% higher at 1.3578 per U.S. dollar, or 73.65 U.S. ​cents, its strongest level since February 12. Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here. For the week, the currency was up ​0.5%, as soaring oil prices driven by the Middle East conflict offset safe-haven ⁠demand for the greenback. Advertisement · Scroll to continue The loonie posted sharper weekly gains against the other G10 currencies, ​particularly those of oil importers. Against the euro , it was up 2.2%, marking its biggest ​weekly advance since February 2022. The price of oil settled 12.2% higher at $90.90 a barrel on Friday as the conflict kept shipping and energy exports through the vital Strait of Hormuz halted. Oil is one of Canada's ​major exports so the price increase could boost Canada's economy as well as government ​tax revenue. "Taken along with the prospects that the Iran conflict is widening and timelines extending, that’s a ‌boost ⁠to Canadian treasuries," said Amo Sahota, director at Klarity FX in San Francisco. Advertisement · Scroll to continue "Then of course we have the shapeshifting in U.S. rate projections this week as traders assess higher U.S. inflation risks as well as a disappointing jobs report." The U.S. economy unexpectedly shed jobs in ​February and the unemployment ​rate increased to ⁠4.4%, potentially hinting at a deterioration in labor market conditions that could put the Federal Reserve in a difficult spot amid rising ​oil prices. The U.S. dollar (.DXY), opens new tab gave back some recent gains against a ​basket of ⁠major currencies and U.S. Treasury yields eased. Canadian economic data was upbeat. The seasonally adjusted Ivey Purchasing Managers Index rose to 56.6 last month from 50.9 in January, posting its highest level ⁠since September. The ​Canadian 10-year yield was up 4.7 basis points at ​3.406%, while the gap between it and the equivalent U.S. rate narrowed by 4.9 basis points to 73.8 ​basis points in favor of the U.S. note.