The US dollar strengthened against its Canadian counterpart on Tuesday, with the greenback finding support from chaos in global financial markets and surging Treasury yields. Can the buck continue its exceptional upward trajectory this week?

The global economy is poised to experience lower growth this year because of the Ukraine-Russia war, the International Monetary Fund (IMF) warned.

The Washington-based institution slashed its global growth projections for 2022 and 2023, arguing that the economic challenges from Russia’s invasion of Ukraine will “propagate far and wide.”

According to the IMF, the global economy is poised to expand 3.6% this year and the next, representing a 0.8 and 0.2 percentage point drop, respectively.

“Global economic prospects have been severely set back, largely because of Russia’s invasion of Ukraine,” said Pierre-Olivier Gourinchas, economic counsellor at the IMF, in a blog post on Tuesday. “The effects of the war will propagate far and wide, adding to price pressures and exacerbating significant policy challenge.”

This comes after the World Bank trimmed its global growth expectations from 4.1% to 3.2% for 2022.

On the economic data front, housing starts rose 0.3% in March, down from the 6.5% surge in February, totaling 1.793 million. Building permits edged up 0.4% last month, up from the 1.6% decline in the previous month, totaling 1.873 million.

Canada also reported housing starts data, coming in at 246,200 in March, according to the Canada Mortgage and Housing Corporation (CMHC). This is below the market estimate of 250,200 units.

The US Treasury market is mostly up across the board on Tuesday, with the benchmark 10-year yield up 0.051% to 2.913%. The one-year bill advanced 0.062% to 1.83%, while the 30-year bond swelled 0.042% to 2.995%.

The US Dollar Index (DXY), which measures the greenback against a basket of currencies, rose 0.17% to 100.95, from an opening of 100.78. The DXY had topped in overnight trading. Year-to-date, the index is up more than 5%.

The USD/CAD currency pair picked up 0.21% to 1.2640, from an opening of 1.2613, at 13:22 GMT on Tuesday. The EUR/USD inched 0.06% higher to 1.0788, from an opening of 1.0782.