The Canadian dollar climbed against its most major counterparts in the Asian session on Tuesday, as oil prices surged on concerns over a tightening of oil supply and a growing global demand.

Brent crude hit a 3-year high of $80.20 per barrel, while WTI crude crossed $76 a barrel.

Investors fear that supply disruptions from hurricanes are persisting much longer than thought as demand rises following the virus crisis.

African oil exporters such as Nigeria and Angola may struggle to raise output to production quotas set by the OPEC amid underinvestment and maintenance problems.

Inflation in the U.S. is elevated and could persist in the coming months before dropping back towards the Fed's long-run 2 percent goal, Chairman Jerome Powell said in prepared remarks before the Senate Banking Committee.

The Fed is expected to reduce the size of its asset purchase program soon in the wake of a spike in inflation and strengthening of the labor market.

The loonie recovered to 0.9182 versus the aussie, from a low of 0.9212 seen at 1:45 am ET. The loonie is seen facing resistance around the 0.90 region.

The loonie touched 1.4736 against the euro, its highest level since August 13. The loonie is likely to challenge resistance around the 1.46 level.

The loonie climbed to a 1-1/2-month high of 88.32 against the yen from yesterday's close of 87.87. The loonie is poised to find resistance around the 90 level.

In contrast, the loonie reversed from an early nearly 3-week high of 1.2594 against the greenback and was trading at 1.2652. The loonie may locate support near the 1.29 level.

Looking ahead, European Central Bank President Christine Lagarde is due to deliver opening remarks at the 2021 ECB Forum on Central Banking, via satellite at 8 am ET.

U.S. wholesale inventories and advance goods trade balance for August and FHFA's house price index and S&P/Case-Shiller home price index for July, as well as consumer confidence index for September will be published in the New York session.

Federal Reserve Bank of Chicago President Charles Evans is set to deliver opening remarks at the payment systems at a virtual symposium hosted by the Federal Reserve Bank of Chicago at 9 am ET.

Federal Reserve Chair Jerome Powell is scheduled to testify about the Coronavirus and CARES Act before the US Senate Committee on Banking, Housing, and Urban Affairs, in Washington DC at 10 am ET.

Federal Reserve Governor Michelle Bowman is due to speak at the Community Banking in the 21st Century Research and Policy Conference, via satellite at 1:40 pm ET.

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