TORONTO, May 5 Reuters The Canadian dollar will claw back its recent decline over the coming year, as elevated oil prices bolster Canada39;s trade surplus and the central bank potentially hikes interest rates just as much as the U.S. Federal Reserve, a Reuters poll showed.

The loonie has lost ground since it touched 1.24 per U.S. dollar, or 80.65 U.S. cents, in April. This has occurred as the safehaven greenback has been supported against major currencies by bets that the Federal Reserve would raise interest rates aggressively to tame inflation.

On Wednesday, the Fed hiked by half a percentage point, its biggest single move in 22 years.

Still, the Canadian dollar has fared better than most other G10 currencies in 2022, shielded by domestic economic strength, including a string of monthly trade surpluses. Data on Wednesday showed Canadian exports climbing to a record high in March. 

With the price of oil where it is, Canada39;s trade surplus should continue to provide good support for the loonie, said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York.

The more that the market accepts that oil north of 100 a barrel is not a spike phenomenon but is something that is longer lasting, the more that we39;ll see some of those petrogreenbacks converted into Canadian dollars.

Canada is a major producer of oil , which has climbed more than 40 this year as Western sanctions on Russia have disrupted supplies.

The median forecast in the…