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CANADA FX DEBT-C$ rises to five-day high as safe-haven demand cools

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Canadian dollar strengthens 0.1% against greenback

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Touches strongest level since last Thursday at 1.3632

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Price of U.S. oil increases 0.1%

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Canadian bond yields rise across curve

TORONTO, March 28 (Reuters) - The Canadian dollar strengthened to a five-day high against its U.S. counterpart on Tuesday as easing of banking sector stress reduced demand for safe-haven assets and ahead of the presentation of Canada's budget.

The price of oil, one of Canada's major exports, was holding on to its sharp gains from the previous session amid supply disruption risks from Iraqi Kurdistan and hopes that turmoil in banking is being contained.

U.S. crude prices were up 0.1% to $72.91 a barrel, while yields on U.S. Treasuries rose and the U.S. dollar lost ground against a basket of major currencies.

The Canadian dollar was trading 0.1% higher at 1.3650 to the greenback, or 73.26 U.S. cents, after touching its strongest intraday level since last Thursday at 1.3632.

Canadian Finance Minister Chrystia Freeland will present this year's budget to parliament at around 4 p.m. EDT (2000 GMT). The document will have a major focus on scaling up investment in clean technology and will include investments in healthcare and help for low-income households.

Investors were also awaiting a speech by Bank of Canada Deputy Governor Toni Gravelle on Wednesday. Money markets are betting that the Canadian central bank will shift to cutting interest rates this year after moving to pause its tightening campaign earlier in March.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries.

The 10-year touched its highest since March 10 at 2.948% before dipping to 2.918%, up 2.5 basis points on the day. (Reporting by Fergal Smith; Editing by Paul Simao)

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