TORONTO: The Canadian dollar weakened against its US counterpart on Tuesday as fears that the Omicron coronavirus variant could impede global economic recovery offset data showing stronger than expected growth in the domestic economy.

World share markets dropped after the CEO of drugmaker Moderna warned that COVID-19 vaccines are unlikely to be as effective against the new variant.

Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to prospects for global growth.

US crude oil futures fell nearly 4% to $67.23, while the Canadian dollar was trading 0.2% lower at 1.2767 to the greenback, or 78.33 US cents.

The currency touched its weakest intraday level since Sept. 22 at 1.2812.