Crude oil prices retreated as indications of slowing global energy demand bumped up against record-high inventories.
US crude prices were down 2.01 percent to $37.11 a barrel. Brent crude lost 1.59 percent to $37.19, moving toward 11-year lows.
The slump in oil prices weighed on risk appetite , providing an additional headwind for commodity linked currencies.
At 9:12 a.m. EST (1412 GMT), the Canadian dollar was trading at C$1.3889 to the greenback, or 72.00 US cents, weaker than Tuesday's close of C$1.3823, or 72.34 US cents.
The currency's strongest level of the session was C$1.3830, while its weakest level was C$1.3916. It hit its weakest level in more than 11-years on Dec. 18 at C$1.4003.
Canadian government bond prices were lower across the maturity curve, with the two-year price down 1 Canadian cent to yield 0.503 percent and the benchmark 10-year falling 12 Canadian cents to yield 1.420 percent.
The curve steepened for as second straight day, as the spread between the 2-year and 10-year yields widened 1.2 basis points to 91.7 basis points, indicating underperformance for longer-dated maturities.
The Canada-US 10-year spread was 1 basis point narrower at -89.0 basis points, trimming recent outperformance for Canadian government bonds, but trading near a record wide gap.
The domestic data calendar remains bare. But further details of next week's Government of Canada 2-year auction will be announced.