The Canadian dollar strengthened against its U.S. counterpart as oil prices and United States bond yields touched their lowest levels in a month on Wednesday, while investors waited for an interest rate decision from the Bank of Canada. U.S. bond yields and the US dollar fell as investors bet that the Federal Reserve will never reduce its economic stimulus plan further. The price of oil, one of Canada's major exports, was boosted by signs of strong fuel demand in western economies and the faded prospects of Iranian supplies returning. The U.S. crude prices jumped 0.4% to $70.36 a barrel in United States currency, while the Canadian dollar was trading 0.4% higher at 1.2070 against the greenback or 82.85 US cents instead. The loonie touched a six-year high at 1.2007, boosted by soaring commodity prices and the more strict stance of the Bank of Canada. The Central Bank's announcement on the interest rate is due at 10 a.m. The benchmark rate is expected to be kept on hold until the fourth quarter of 2022, but further reduction of interest rates could happen as soon as the next quarter, a Reuters poll showed. The Canadian government bond yields were lower across a flatter curve, reflecting the move in the U.S. Treasuries. The 10 year gap fell to 1.417% to 3.6 basis points - lowest level since March 11. Then finally, what is the definitive answer to a question and it is likely that you can't be right.