The U.S. dollar <.DXY> rose to an 11-day high against a basket of major currencies, continuing a recovery from four-month lows plumbed at the start of the year.
Oil rose to its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week.
U.S. crude
At 9:14 a.m. EST (1414 GMT), the Canadian dollar
The loonie touched its strongest level in three months at C$1.2355 on Friday after stronger-than-expected domestic jobs data prompted investors to bet on a Bank of Canada interest rate hike as soon as Jan. 17.
Chances of a rate hike next week have more than doubled to 80 percent since the jobs data, the overnight index swaps market indicated. They got a further boost from a Bank of Canada business survey on Monday that showed optimism.
Canadian government bond prices were lower across a steeper yield curve, with the two-year
The 2-year yield touched its highest intraday since June 2011 at 1.799 percent.
Canadian housing starts fell in December to a seasonally adjusted annual rate of 216,980 from November's downwardly revised 251,675. Economists had expected a decline to a 212,500 annual rate.
(Reporting by Fergal Smith; Editing by Andrew Hay)