U.S. dollarIan Waldie
The Canadian dollar closed lower Tuesday as a stronger U.S. dollar pressured oil and gold prices while traders took in news of Monday's federal election results.
The currency closed down 0.19 of a cent to $1.0498 (U.S.).
Traders were relieved to see the Conservatives win a majority in Monday's election as it removes a degree of uncertainty from the political landscape.
Also, the "Conservative platform, (tax rate, energy policy) is viewed as more business friendly on the international stage," said Scotia Capital chief currency strategist Camilla Sutton.
She also observed that the Canadian dollar has underperformed against other currencies over the last few months "and could be overdue for some catch-up in the coming weeks."
Oil prices fell to just above $111 a barrel as a stronger U.S. dollar made crude more expensive for investors with other currencies. The June crude contract on the New York Mercantile Exchange fell $2.47 to $111.05 a barrel.
Crude has jumped more than 30 per cent since mid-February, a rally fuelled by disruption of oil supplies in Libya and a weaker dollar. On days when the U.S. dollar strengthens, commodities such as oil tend to fall.
Precious metal prices also backed off as the June gold contract on the Nymex declined $16.70 from Monday's latest record close to $1,540.40 an ounce.
But copper beat the trend lower as the July contract in New York was ahead 6 cents at $4.25 a pound.
The U.S. dollar was also higher against a number of other currencies, particularly the British pound after data showed a widely watched purchasing managers index for the manufacturing sector fell to a seven-month low.
The report raised doubts about when the Bank of England will hike interest rates to deal with rising inflation.