(RTTNews) - The Canadian dollar extended its early morning rally versus its major opponents in early New York trading on Tuesday as oil rose above $78 per barrel. As Dubai debt default fears eased, investors look for fresh clues to the pace of global economic recovery, which sent oil prices higher. U.S. crude for January delivery crept up $0.90 to $78.18 a barrel at 8:20 am ET. Prices reached as high as $78.44 per barrel earlier in the day. At the same time, Brent crude inched up $1.29 to $78.47 after earlier touched as high as $79.15. The Canadian dollar climbed to 83.37 against the yen around 8:20 am ET, its highest level in 5 days. This was up by more than 4 percent from last week's 4-1/2 month low of 79.96 and 1.8 percent from yesterday's close of 81.86. The next upside target for the loonie-yen pair is seen around the 84.3 level. In an unscheduled monetary policy meeting today, the Policy Board of the Bank of Japan unanimously decided to hold its key interest rate unchanged at 0.1%. The central bank also decided to further enhance easy monetary conditions by introducing a new fund-supplying operation to encourage a further decline in longer-term interest rates. Against the euro, the Canadian dollar advanced to a 13-day high of 1.5733 by 8:20 am ET and the pair moved sideways thereafter. The loonie has thus appreciated by more than 1.75 percent against the 16-nation currency since it reached a 2-month low of 1.6014 on November 27. The euro-loonie pair that closed yesterday's deals at 1.5851 is presently quoted at 1.5754. In economic news from the euro-area, Germany's retail sales in real terms increased a seasonally and calender adjusted 0.5% month-on-month in October, compared to the 0.2% decline in the preceding month. Economists expected an increase of 0.4%. Year-on-year, retail sales decreased 1.7% in October, slower than the 3.2% fall in September, revised from 3.9% drop estimated initially. Economists were looking for a decline of 1.9%. Meanwhile, Markit Economics reported that the Eurozone Manufacturing Purchasing Managers' Index stood at a seasonally adjusted 51.2 in November, revised up from 51 estimated preliminarily. Economists had expected the preliminary estimate to be retained, after the 50.7 reading in October. The Canadian currency continued Monday's uptrend versus its US counterpart in early New York deals today. The loonie jumped to a 19-day high of 1.0427 against the greenback before holding steady around 8:20 am ET. The greenback-loonie pair, which closed Monday's North American trading at 1.0564, is presently worth 1.044 with 1.041 seen as the next target level.

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