* Canadian dollar rises 0.5% against the greenback
* Loonie touches its strongest since Feb. 21 at 1.3230
* Canada's trade deficit widens to C$3.2 billion in June
* Canadian bond yields rise across a steeper curve
TORONTO, Aug 5 (Reuters) - The Canadian dollar climbed to
its highest in more than five months against its broadly weaker
U.S. counterpart on Wednesday as oil prices rose, but some gains
for the loonie were given back after domestic data showing a
wider trade deficit.
The loonie was trading 0.5% higher at 1.3250 to the
greenback, or 75.47 U.S. cents. The currency touched its
strongest intraday level since Feb. 21 at 1.3230.
Canada's trade deficit unexpectedly ballooned to C$3.19
billion in June on a surge in motor vehicle and parts imports as
the economy started to reopen, Statistics Canada data indicated.
Analysts had forecast a deficit of C$0.90 billion.
The price of one of Canada's major exports, oil, rose to its
highest since early March on data showing a big drop in U.S.
crude inventories.
U.S. crude oil futures were up 3.4% at $43.12 a
barrel, while the U.S. dollar extended its recent decline
as euro zone data reassured and a U.S. coronavirus relief
package remained stalled in Congress.
Canadian government bond yields were higher across a steeper
curve, with the 10-year up 4.5 basis points at
0.480%. Last Friday, it hit its lowest intraday level in nearly
five months at 0.412%.
Canada's employment report for July is due on Friday.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
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