TORONTO (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday as a rally in the price of oil, one of Canada's major exports, lost some momentum and the greenback broadly climbed.
The U.S. dollar (DXY) rose against a basket of major currencies as a court decision challenging German participation in the euro zone's stimulus program weighed on the euro.
U.S. crude oil futures (CLc1) were down 5.2% at $23.29 a barrel, pulling back from a near four-week high earlier in the session, as a report showing a higher-than-expected rise in U.S. inventories offset hopes for a recovery in demand as some countries ease coronavirus lockdowns.
At 8:29 a.m. (1229 GMT), the Canadian dollar
The decline for the loonie came as a report showed U.S. private employers laid off more than 20 million workers in April. Canada sends about 75% of its exports to the United States.
Canada's jobs report for April is due on Friday. Economists are looking for employment to plunge by four million as non-essential business activity shut down across the country, adding to a jobs decline of one million in March.
Canadian bond yields rose across a flatter curve, with the 2-year up 2.4 basis points at 0.335%.