TORONTO (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Wednesday, nearing a one-week low it hit the previous day as oil prices fell on fading alarm over an Iran rocket strike.
The price of oil, one of Canada's major exports, fell from a four-month peak hit in frenzied early trading after a rocket attack by Iran on American forces in Iraq appeared to have no impact on oil infrastructure or crude flows. U.S. crude oil futures (CLc1) were down 0.8% at $62.19 a barrel.
At 9:26 a.m. (1426 GMT), the Canadian dollar was trading 0.1% lower at 1.3012 to the greenback, or 76.85 U.S. cents. The currency, which hit on Tuesday its weakest intraday level since New Year's Eve at 1.3029, traded in a range of 1.2977 to 1.3024.
Bank of Canada Governor Stephen Poloz is due to speak on Thursday, which could give investors clues on the interest rate outlook. The central bank left its benchmark interest rate on hold at 1.75% in 2019 even as some other major central banks, such as the Federal Reserve and the European Central Bank, eased.
Canada's jobs data for December is due on Friday. In November, the Canadian job market shed more than 71,000 positions.
Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year (CA2YT=RR) rose 0.5 Canadian cents to yield 1.636% and the 10-year (CA10YT=RR) was up 5 Canadian cents to yield 1.577%.
The 2-year yield touched its lowest intraday level since Dec. 4 at 1.579%.