C$ weakens after Bank of Canada says economy below potential

TORONTO: The Canadian dollar weakened slightly on Tuesday after a senior Bank of Canada official said the economy was still operating below its potential and that the impact of a sharp drop in the price of oil would be felt across the country.

The currency hit a session low of C$1.2575 to the US dollar, or 79.52 US cents, after the comments from Senior Deputy Governor Carolyn Wilkins, some of the central bank's first remarks since the surprise move to cut rates last month.

It settled on Monday at C$1.2465, or 80.22 US cents.