TORONTO: The Canadian dollar was little changed against its broadly stronger U.S. counterpart on Tuesday as oil prices climbed and domestic data showed the economy expanding less robustly than expected in the first quarter.

The Canadian economy grew at an annualized rate of 3.1% in the first quarter, below analyst predictions of 5.4% but in line with the Bank of Canada’s forecast of 3.0%, Statistics Canada data showed.

Money markets expect Canada’s central bank to raise interest rates by half a percentage point for a second straight time at a policy announcement on Wednesday in an effort to cool inflation.

The Canadian dollar was nearly unchanged at 1.2654 to the greenback, or 79.03 U.S. cents, after trading in a range of 1.2653 to 1.2686. On Monday, it touched its strongest level in more than five weeks at 1.2648.

The price of oil, one of Canada’s major exports, extended a bull run after the EU agreed to a partial and phased ban on Russian oil and China decided to lift some coronavirus restrictions.

U.S. crude prices were up 3.4% at $118.92 a barrel, while the U.S. dollar rallied against a basket of major currencies. The greenback was helped by a weaker euro as data showed euro zone inflation hitting a record high.

Canadian government bond yields were higher across a steeper curve, tracking the move in U.S. Treasuries and German Bunds.

The 10-year touched its highest level since May 19 at 2.930% before dipping to 2.899%, up 7.3 basis points on the day.