TORONTO: The Canadian dollar hit a one-month low against its US counterpart on Tuesday, pressured by lower oil prices and broader gains for the greenback, as North Korea tensions eased and data showed a jump in US retail sales.
The US dollar climbed against a basket of major currencies after North Korea's leader delayed a decision on firing missiles towards Guam. Also aiding the greenback, US retail sales recorded their biggest increase in seven months in July.
Oil prices extended a heavy sell-off, weighed down by a stronger US dollar and signs of weaker demand in China.
US crude prices were down 0.53 percent to $47.34 a barrel.
At 9:17 a.m. ET (1317 GMT), the Canadian dollar was trading at C$1.2758 to the greenback, or 78.38 US cents, down 0.3 percent.
The currency's strongest level of the session was C$1.2720, while it touched its weakest since July 12 at C$1.2778.
Resales of Canadian homes fell 2.1 percent in July from June, the fourth straight monthly decline, as the cooling down of the Toronto housing market continued, the Canadian Real Estate Association said.
Separate data showed that lending to Canadian small businesses rose for a fifth straight month in June on stronger activity in construction and other major industries, suggesting that companies are adding to solid growth in the domestic economy.
Investors are awaiting Canada's inflation data for July on Friday to see whether the numbers will support a potential second interest rate hike from the Bank of Canada later this year.
The central bank hiked rates last month for the first time in nearly seven years.
Negotiations for modernizing the North American Free Trade Agreement (NAFTA) start on Wednesday. The Canadian government's goals in the talks include preserving NAFTA's dispute-settlement mechanism, Foreign Minister Chrystia Freeland said on Monday, setting up a potential clash with Washington.
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