* Canadian dollar weakens 0.4% against the greenback
* Price of copper falls 3.6%
* Loonie touches its weakest level since May 13 at 1.2199
* Canadian housing starts rise 3.2% in May
TORONTO, June 15 (Reuters) - The Canadian dollar weakened on
Tuesday against its U.S. counterpart and all the other G10
currencies, as copper prices fell to seven-week lows and
investors awaited guidance from the Federal Reserve on prospects
for its bond-buying program.
The loonie was trading 0.4% lower at 1.2193 to the
greenback, or 82.01 U.S. cents, the biggest decline among G10
currencies. Earlier in the session, it touched its weakest level
since May 13 at 1.2199.
Copper fell 3.6% as traders and funds cut bets on
higher prices due to growing nervousness that top consumer China
would soon move to curb further price rises.
Canada is a major exporter of commodities, including copper
and oil. Oil was up 1.3% at $71.80 a barrel, on optimism that
demand will recover rapidly in the second half of this year.
In a new policy statement and economic projections due on
Wednesday, the Fed is expected to acknowledge the first
conversations among its policymakers about when and how fast to
pare back the massive bond-buying program launched last year to
help battle the recession triggered by the pandemic.
Canadian housing starts rose 3.2% in May compared with the
previous month as multiple urban starts jumped, data from the
Canadian Mortgage and Housing Corporation showed.
A preliminary estimate from Statistics Canada showed
producer prices in Canada rising by 3.1% in May from April,
pushed higher mainly by softwood lumber.
Data on Canadian consumer prices is due on Wednesday, which
could offer clues on the Bank of Canada policy outlook.
Canadian government bond yields were little changed across
the curve, with the 10-year up half a basis point at
1.392%. On Monday, it touched its lowest intraday level in more
than three months at 1.365%.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
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