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Canadian dollar weakens 0.1% against the greenback
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Touches its weakest level since Nov. 3 at 1.3773
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Price of U.S. oil falls 1.5%
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Canadian yield curve further inverts
TORONTO, March 8 (Reuters) - The Canadian dollar weakened to a four-month low against its U.S. counterpart on Wednesday as investors awaited a Bank of Canada policy decision, expecting the central bank to hold steady after eight consecutive interest rate hikes. The loonie was trading 0.1% lower at 1.3765 to the greenback, or 72.65 U.S. cents, after touching its weakest level since Nov. 3 at 1.3773.
The move came as the U.S. dollar scaled multi-month highs against a basket of major currencies after Federal Reserve Chair Jerome Powell warned that U.S. interest rates might need to go up even faster and higher than expected to rein in stubborn inflation.
The Bank of Canada is expected to keep its benchmark interest rate on hold at 4.50% on Wednesday, becoming the first of the world's major central banks to suspend its tightening campaign, after economic growth stalled in the fourth quarter of last year. The policy decision is due at 10 a.m. ET (1500 GMT). Canada recorded a surprise trade surplus of C$1.9 billion ($1.4 billion) in January, driven by broad-based gains in exports, while imports posted a smaller increase led by motor vehicles and parts, Statistics Canada said. Analysts had forecast a small deficit. Canada's key export, oil , was down 1.4% at $76.48 a barrel, extending the previous day's sharp decline.
Canadian government bond yields were mixed across a more deeply inverted curve. The 2-year rose 1.2 basis points to 4.339%, while the 10-year was down 3.5 basis points at 3.283%. (Reporting by Fergal Smith Editing by Bernadette Baum)
