* Canadian dollar dips 0.1% against the greenback
* Price of U.S. oil rises 0.6%
* Canadian bond prices rise across a flatter yield curve
TORONTO, April 10 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday, extending a pullback from a near three-week high the day before as the greenback broadly rose ahead of the release of minutes from the Federal Reserve’s latest meeting.
The minutes from the Fed’s March meeting could give more insight into the central bank’s thinking behind its move to suspend rate hikes this year.
The Bank of Canada is also seen keeping rates on hold in the coming months after a drop in oil prices contributed to a slowdown in the domestic economy. The central bank has also worried about the impact of global trade tensions on economic activity.
Canada has its own trade conflicts, including a dispute with the United States over tariffs on exports of Canadian steel and aluminum. On Tuesday, Canadian Foreign Minister Chrystia Freeland said the government is looking at ways to boost the effectiveness of its retaliatory tariffs against the U.S.
At 9:35 a.m. EDT (1335 GMT), the Canadian dollar traded 0.1% lower at 1.3340 to the greenback, or 74.96 U.S. cents. The currency, which touched its strongest intraday level since March 21 on Tuesday at 1.3285, traded in a range of 1.3319 to 1.3360.
The loonie dipped even as tightening supply boosted the price of oil, one of Canada’s major exports. U.S. crude prices were up 0.6% at $64.33 a barrel.
The U.S. dollar advanced against a basket of major currencies, helped by weakening of the euro after the European Central Bank kept its ultra-easy stance unchanged.
Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries after U.S. data showed a slowdown in underlying inflation.
The two-year rose 2.5 Canadian cents to yield 1.593% and the 10-year was up 23 Canadian cents to yield 1.703%. (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)
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