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Loonie hits its weakest since Jan. 6 at 1.3460
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New home prices fall 0.2% in January
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Price of U.S. oil falls nearly 1%
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Canadian bond yields ease across curve
TORONTO, Feb 22 (Reuters) - The Canadian dollar was little changed against the U.S. dollar on Wednesday as investors awaited minutes from the latest Federal Reserve policy meeting and domestic data added to signs that higher borrowing costs are weighing on the housing market. The Canadian dollar was trading nearly unchanged at 1.3531 to the greenback, or 73.90 U.S. cents, after touching its weakest since Jan. 6 at 1.3460. The currency has been pressured in recent days by a decline in risk appetite as investors worried that the Fed would raise interest rates to a higher level than previously thought to slow the economy and cool inflation. Minutes from the Fed's Jan. 31-Feb. 1 meeting, due at 2 p.m. ET (1900 GMT), could offer clues on the outlook for further tightening. Meanwhile, investors expect the Bank of Canada will pause its aggressive interest rate hiking campaign next month after data on Tuesday showed Canada's annual inflation rate easing more than expected in January to 5.9%. Canadian new home prices fell 0.2% in January from December, data from Statistics Canada showed on Wednesday, while the annual rate of increase slowed to 2.7%. It was 11.8% in January last year. The price of oil, one of Canada's major exports, fell as the prospect of higher U.S. interest rates stoked concerns about fuel demand. U.S. crude prices were down nearly 1% at $75.63 a barrel. Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year eased 2.3 basis points to 3.418% after touching on Tuesday its highest intraday level in more than three months at 3.447%. (Reporting by Fergal Smith; Editing by Shounak Dasgupta)
