* Canadian dollar weakens 0.3% against the greenback
* Canada posts a C$1.1 billion trade deficit in March
* Price of U.S. oil rises 1.2%
* Canada's 10-year yield was unchanged at 1.522%
TORONTO, May 4 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as the greenback broadly
climbed and data showed Canada's trade balance swinging to a
surprise deficit in March, with the loonie pulling back from a
recent 3-year high.
Canada's trade deficit was C$1.1 billion in March,
Statistics Canada said. Analysts had predicted a surplus of
C$700 million after a revised C$1.4 billion surplus in February.
Separate data showed that the value of Canadian building
permits rose by 5.7% in March from February.
Robust housing construction and resales have bolstered the
outlook for Canada's economy after it was hammered in 2020 by
the coronavirus crisis. Last month, the Bank of Canada projected
that GDP would increase 6.5% this year.
The Canadian dollar was trading 0.3% lower at 1.2316
to the greenback, or 81.20 U.S. cents, having traded in a range
of 1.2274 to 1.2345. Last Friday, the loonie touched its
strongest since February 2018 at 1.2262.
The U.S. dollar rose against a basket of major
currencies, partially unwinding a month-long decline, as risk
appetite faded with investors awaiting upcoming data and policy
speeches for clues.
The price of oil, one of Canada's major exports, climbed
after more U.S. states eased lockdowns and the European Union
sought to attract travelers, though soaring COVID-19 cases in
India capped gains. U.S. crude prices were up 1.2% at
$65.27 a barrel.
Canadian government bond yields were mixed across the curve,
with the 10-year unchanged at 1.522%.
(Reporting by Fergal Smith; Editing by Andrea Ricci)
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