Canadian dollar dips as global COVID-19 restrictions tighten

TORONTO: The Canadian dollar weakened against the greenback and many other G10 currencies on Tuesday, as tightening restrictions to contain the coronavirus pandemic weighed on the price of oil and ahead of comments by Bank of Canada Governor Tiff Macklem.

The price of oil, one of Canada's major exports, fell back as Sweden moved to restrict the size of public gatherings and a British medical adviser suggested strengthening the three-tier system of restrictions when the full lockdown in England ends. US crude prices were down 1.3% at $40.8 a barrel, while the Canadian dollar was trading 0.2% lower at 1.3099 to the greenback, or 76.34 US cents, having traded in a range of 1.3063 to 1.3116.

The loonie lagged all the other G10 currencies except for another commodity-linked currency, the New Zealand dollar.

Macklem will speak on a panel about sustainable finance and the transition to a low-carbon economy. The Bank of Canada is due to publish remarks at 2 p.m. (1900 GMT).

Canadian wholesale trade increased by 0.9% in September from August, beating analyst expectations, on higher sales in the food, beverage and tobacco subsector, Statistics Canada data showed.

Separate data, from the Canadian Mortgage and Housing Corporation, showed that housing starts rose 3% in October compared with the previous month.

Canada's inflation report for October is due on Wednesday.

Canadian government bond yields were lower across a flatter curve in sympathy with US Treasuries. The 10-year fell 3.1 basis points to 0.707%.