C$ slips on weaker oil price, stronger US dollar

The Canadian dollar fell to a three-day low against its U.S. counterpart on Thursday, as oil prices slipped and the U.S. dollar was broadly stronger against most major peers.

At 9:25 a.m. EDT (1325 GMT), the Canadian dollar  traded 0.5% lower at 1.3391 to the greenback, or 74.68 U.S. cents. The currency, which touched its strongest intraday level since March 21 on Tuesday at 1.3285, traded in a range of 1.3313 to 1.3397.

"The market tone appears somewhat tentative and oil prices are softening modestly from their recent highs," Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said in a note.

Rising U.S. crude stocks dragged the price of oil lower on Thursday but prices continued to find a floor as OPEC-led cuts and falling Venezuelan output tightened global supplies.

International benchmark Brent futures were at $71.19 a barrel at 1325 GMT, down 0.54 cents from their last close.

Weakness in the price of oil, one of Canada's major exports, has contributed to a slowdown in the Canadian economy and the Bank of Canada is seen keeping rates on hold in the coming months. The central bank has also worried about the impact of global trade tensions on economic activity.

New home prices in Canada were flat in February, for the sixth time in the past seven months, Statistics Canada said on Thursday.

The U.S. dollar index, which measures the currency against a basket of six rivals, was up 0.2% on Thursday after data showed producer prices increased by the most in five months in March amid a surge in the cost of gasoline.

In the Canadian government bond market, the two-year  fell 4.3 Canadian cents to yield 1.584% and the 10-year slipped 20 Canadian cents to yield 1.705%.