TORONTO: The Canadian dollar was little changed against its US counterpart on Tuesday as oil prices fell and domestic data showed signs of cooling in the red-hot housing market, while bond yields rose to multi-year highs.
The price of oil, one of Canada’s major exports, fell in volatile trading on demand concerns after the International Monetary Fund reduced economic growth forecasts and warned of higher inflation.
US crude prices were down 4.3% at $103.51 a barrel.
Canada’s average home price fell 2.5% in March from February and sales dropped 5.4%, according to data from the Canadian Real Estate Association. Data from the national housing agency showed housing starts falling 2% in March compared with the previous month.
Canada’s inflation report for March is due on Wednesday which could offer clues on the Bank of Canada policy outlook. Last Wednesday, the central bank raised its benchmark interest rate by half of a percentage point to 1%, its biggest single hike in more than two decades, to try to limit price pressures.
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