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Canadian dollar weakens 0.4% against the U.S. dollar
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Touches its weakest since Feb. 24 at 1.3663
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Price of U.S. oil falls 0.4%
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Canadian bond yields ease across curve
TORONTO, March 7 (Reuters) - The Canadian dollar weakened to a near two-week low against its U.S. counterpart on Tuesday as oil gave back some of its recent gains and investors awaited key testimony from Federal Reserve Chair Jerome Powell.
Global shares eased and the U.S. dollar rose ahead of Powell's testimony before the Senate Banking Committee that could offer a steer on the outlook for U.S. interest rates, while weak Chinese trade data dented oil and copper. The price of oil , one of Canada's major exports, fell as a stronger U.S. dollar and weak oil data from top crude oil importer China shifted momentum after five days of gains.
U.S. crude prices fell around 0.4% to $80.16 a barrel, while the Canadian dollar was trading 0.4% lower at 1.3660 to the U.S. currency, or 73.21 U.S. cents, after touching its weakest since Feb. 24 at 1.3663. The Bank of Canada is due to make a policy decision on Wednesday. Investors expect the BoC to leave its policy rate on hold at a 15-year high of 4.50% following eight consecutive hikes, but see about a 70% chance that the central bank may resume tightening later this year. Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year eased 3.9 basis points to 3.322%. (Reporting by Fergal Smith. Editing by Jane Merriman)
