Canadian dollar hits two-month low

The Canadian dollar hit a two-month low on Wednesday, but pared gains late in the session as speculative buying of US dollars versus the loonie ran into technical resistance.
Domestic bond prices were barely changed, but under-performed US treasuries as dealers digested a media briefing from senior Bank of Canada officials.
The currency dropped as low as C$1.1723 to the US dollar, or 85.30 US cents, after weakening overnight, before running into technical barriers as traders concluded it had fallen too far and too fast from the 14-year highs hit on March 2.
It finished at C$1.1661 to the US dollar, or 85.76 US cents, down from C$1.1640 to the US dollar, or 85.91 US cents, at Tuesday's close.
Weaker oil prices - US crude futures eased about 1 percent to $61.77 a barrel - likely contributed to the retreat, although the major reason for the currency's sharp fall this month has been reduced expectations for Bank of Canada interest rate increases, analysts said.