Canadian dollar gains 0.7 against the greenback
Touches a near threeweek high at 1.4280
Price of U.S. oil increases 1.1
Bond yields rise across a steeper curve

TORONTO, Jan 6 Reuters The Canadian dollar rose to a near threeweek high against its U.S. counterpart on Monday, as investors weighed the potential for Canada39;s economy to escape broadbased U.S. tariffs and a report that Canadian Prime Minister Justin Trudeau would resign.

The loonie was trading 0.7 higher at 1.4350 to the U.S. dollar, or 69.69 U.S. cents, after touching its strongest intraday level since Dec. 17 at 1.4280.

Trudeau will announce on Monday that he intends to step down as Liberal leader but he will stay on in his post until the party has chosen a replacement, CBC News reported, citing sources.

Analysts say that investors could welcome greater political clarity after increased calls for Trudeau to step aside since December, as well as the prospect of a more market friendly government.

News that Justin Trudeau will resign is helping to underpin loonie gains, said Nick Rees, senior FX market analyst at Monex Europe Ltd. Markets have become disillusioned with Trudeau his administration having presided over a period of economic stagnation.

The U.S. dollar slumped against a basket of major currencies after a report said Presidentelect Donald Trump was mulling tariffs that would only be applied to critical imports, potentially a relief for countries such as Canada that were expecting broader…