A buyer pays with a ten euro note at a local market in Nice, France, June 7, 2022. REUTERS/Eric Gaillard

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LONDON, June 28 (Reuters) – The Aussie and Canadian dollar climbed on firmer oil prices on Tuesday while the euro held below $1.06, European Central Bank President ( ECB), Christine Lagarde, having given no new perspective on the policy outlook for the central bank.

The ECB is expected to follow its global peers in raising interest rates in July to control soaring inflation, although economists are divided on the scale of the rate hike to protect a recovery difficult economy due to high oil prices.

Oil prices rose 10% in just a week due to supply constraint concerns, with Brent holding above $117 pushing the Canadian dollar and Australian dollar up 0.3% and 0.4% respectively.

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“Oil is helping the Norwegian krone and the Canadian dollar outperform and the euro is again coming up against resistance at the 1.06 level,” said Kenneth Broux, FX strategist at Societe Generale in London.

The euro held below $1.06 after ECB’s Lagarde said the central bank would act gradually but with the ability to act decisively on any deterioration in inflation over the medium term, especially whether there were signs of unanchoring inflation expectations. Read more

Money markets are pricing in around 238 basis points (bps) of cumulative rate hikes by mid-2023, up from around 280 bps two weeks ago.

The broader movements in the currency market were contained in a big week for the markets in terms of economic data. German inflation figures are due on Wednesday, French data on Thursday and Eurozone figures on Friday.

At the other end of the dial, rising oil prices caused the partially convertible Indian rupee to open at an all-time high and fall further to 78.67 to the dollar. Read more

The U.S. dollar index hit a two-decade high at 105.79 this month and last stabilized at 103.93.

Elsewhere, the offshore Chinese yuan rose after China scaled back the COVID quarantine for international travelers. Read more

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Reporting by Saikat Chatterjee; edited by Jason Neely and Chizu Nomiyama

Our standards: The Thomson Reuters Trust Principles.