C$ eases against broadly firmer US dollar

The Canadian dollar edged lower against its broadly firm US counterpart on Wednesday, but losses were limited as oil prices remained near a five-month high.

The Canadian dollar was at 1.3176 to the greenback, or 75.90 US cents, weaker than Tuesday's close of 1.3168, or 75.94 US cents. The loonie remained close to a seven-month high hit on Monday.

The US dollar was broadly firmer on the day after data showed new orders for key US-made capital goods increased in July, though the pace slowed from June's robust gain, suggesting the rebound in business investment would be gradual amid uncertainty about the course of the COVID-19 pandemic.

The Canadian dollar's losses were in check as the price of oil, one of Canada's major exports, near $46 a barrel on Wednesday and close to its highest since March, was lifted by US producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in US crude inventories.

The Canadian dollar's losses on Wednesday followed a 0.3% gain in the previous session.

Canadian government bond prices were lower across the maturity curve. The two-year yield was at 0.304% up from 0.292% late on Tuesday, while the benchmark Canadian 10-year yield rose to 0.617% from 0.60%.