TORONTO (Reuters] – On Wednesday, the Canadian dollar strengthened against the U.S. currency as calmer global financial markets grew after being under pressure at the beginning of the week from rising Russia-Ukraine tensions.

After he deployed troops to separatist areas of Ukraine, global stocks fell for four days. Investors are waiting to see what the next move by Russian President Vladimir Putin.

While the United States and its allies imposed more sanctions on Russia, they made it clear that they would keep tougher measures in reserve for a complete invasion from Moscow.

Although sanctions were unlikely to cause disruption to oil supply, they helped to limit the oil price, which is Canada’s main export, having hit a 7-year high Tuesday. Oil prices fell 0.2%, to $91.70/barrel.

After trading between 1.2683 and 1.2771, the Canadian dollar rose 0.6% to 1.2691, or 78.80 U.S.cents.

Other commodity-linked currencies saw gains as well, with a New Zealand Dollar reaching a 5-week peak. As expected, the New Zealand central bank increased interest rates. It signaled that the country was more aggressive than anyone could believe and indicated a forward path.

Next Wednesday, the Bank of Canada will likely raise its rates for the first time in October 2018

The yields of Canadian government bonds were more consistent with the U.S. Treasuries move. The 10-year rose by 4.4 basis points, to 1.970%. This is close to the last Wednesday’s 3 year high of 1.995%.