Investing.com - The Canadian dollar eased back from four-week lows on Tuesday as oil prices moved higher but gains were held in check as the outlook for second quarter growth remained dim in the wake of a massive wildfire in Alberta.
USD/CAD eased 0.19% to 1.2938, off Monday’s four-week peaks of 1.3014.
The loonie, as the Canadian dollar is also known, weakened in the previous session amid fears that disruption to production in Canada's oil sands region in northeast Alberta could bring economic growth to a standstill in the second quarter.
Disappointing trade data from China over the weekend also weighed on the commodity-linked Canadian dollar.
China's exports and imports fell more than expected in April, underlining concerns over slowing growth in the world’s second largest economy.
China is a major customer of Canada's commodity exports.
The Bank of Canada said Monday that it is still too early to assess the economic impact of the Alberta wildfire, adding that it would have more to say following its monetary policy meeting later this month.
Oil prices moved higher on Tuesday as disruptions to supply from production outages in Canada and elsewhere overshadowed concerns over a global supply glut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.11.