*
*
Canadian dollar dips 0.1% against the greenback
*
Touches its lowest since April 12 at 1.3489
*
Price of U.S. oil falls 2.1%
*
Canadian bond yields ease across curve
TORONTO, April 20 (Reuters) - The Canadian dollar edged
lower against its U.S. counterpart on Thursday, as investor
sentiment turned less bullish and ahead of a parliamentary
appearance by Bank of Canada Governor Tiff Macklem that could
offer clues on the interest rate outlook.
Wall Street gave back some of its recent gains, pressured by
some disappointing earnings results and prospects of further
U.S. interest rate hikes.
U.S. rate hike expectations also weighed on the price of
oil, one of Canada's major exports.
It fell 2.1% to $77.49 a barrel, while the Canadian dollar
was trading 0.1% lower at 1.3480 to the greenback, or 74.18 U.S.
cents, after touching its weakest since April 12 at 1.3489.
Macklem is due to appear before the Standing Senate
Committee on Banking, Commerce and the Economy at 11:30 a.m. ET
(1530 GMT).
On Tuesday, the BoC governor said in testimony in the House
of Commons that inflation is coming down quickly but that
continued strong demand and the tight labour market are putting
upward pressure on many service prices, and those are expected
to decline only gradually.
Money markets expect the BoC to leave its policy rate on
hold at 4.50%, a 15-year high, through the end of the year. Higher borrowing costs have weighed on the Canadian housing
market.
The Teranet-National Bank House Price Index declined at a
record annual pace of 6.9% in March. Still, prices before
seasonal adjustments were up 0.5% compared to the previous
month, the first increase in ten months.
Canadian government bond yields were lower across the curve,
tracking moves in U.S. Treasuries. The 10-year eased
5.1 basis points to 3.012%, extending its pullback from a
six-week high on Tuesday at 3.107%.
(Reporting by Fergal Smith; Editing by Sharon Singleton)
