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The Canadian dollar CADUSD edged higher against its U.S. counterpart on Wednesday after the Federal Reserve signalled that the pace of interest rate hikes could slow, but gains were capped by tumbling oil prices.

The loonie was trading 0.1% higher at 1.3360 to the greenback, or 74.85 U.S. cents, after moving in a range of 1.3356 to 1.3439. Other G10 currencies had stronger gains.

“I think we are inching back to session highs because there were some dovish sound bites in the FOMC minutes,” said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. “If it wasn’t for oil we would be much higher.”

A “substantial majority” of policy-makers at the Fed’s meeting early this month agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes as debate broadened over the implications of the U.S. central bank’s rapid tightening of monetary policy.

The price of oil, one of Canada’s major exports, settled 3.7% lower at $77.94 a barrel as the Group of Seven nations considered a price cap on Russian oil above the current market level and as gasoline inventories in the United States built by more than analysts’ expected.

Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers are due to appear before the House of Commons Standing Committee on Finance at 4:30 p.m. ET (2130 GMT).

On Tuesday, Rogers said that higher interest rates are starting to slow the Canadian economy.

Canadian government bond yields were mixed across a more deeply inverted yield curve.

The 10-year eased 4.5 basis points to 2.992%, while it traded 5 basis points further below the 2-year rate to a gap of 94.1 basis points. That was its largest in Refinitiv data going back to 1994.