TORONTO, April 18 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday, as the greenback posted broad-based declines and investors weighed domestic data that showed inflation cooling to the lowest level in 19 months.
Canada's annual inflation rate slowed to 4.3% in March, matching expectations, as a fall in energy prices helped to keep the consumer price index in check despite a record rise in mortgage costs.
After the data, money markets continued to see about a 10% chance that the Bank of Canada would hike its benchmark interest rate by 25 basis points at its next policy decision on June 7.
The Canadian central bank expects inflation to decline to around 3% by mid-year and says it is prepared to tighten further if needed to return inflation to its 2% target.
The Canadian dollar was nearly unchanged at 1.3395 to the greenback, or 74.65 U.S. cents, after moving in a range of 1.3361 to 1.3398.
The U.S. dollar fell against a basket of major currencies after better-than-forecast growth data from China, while the price of oil, one of Canada's major exports, was little changed at about $80.80 a barrel.
Canadian government bond yields edged lower across the curve. The 10-year dipped 1.1 basis points to 3.09%, after earlier touching its highest level since March 10 at 3.107%.
