The Canadian dollar weakened against its U.S. counterpart on Monday, underperforming most other G10 currencies as lingering worries about global growth weighed on stocks ahead of a potential interest rate hike this week from the Federal Reserve.

Wall Street lost ground as edgy investors waited for the Fed’s monetary policy guidance on Wednesday and its implications of slowing global growth.

Canada exports many commodities, including oil, so its economy could be hurt by slower global growth. U.S. crude prices were down 0.2 per cent at $51.12 a barrel.

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At 9:45 a.m., the Canadian dollar was trading 0.1 per cent lower at 1.3397 to the greenback, or 74.64 U.S. cents. The loonie, which traded in a range of 1.3373 to 1.3402, was the only G10 currency other than the Norwegian krone to decline.

Last week, the loonie fell 0.4 per cent. It was the fourth straight week that the currency was down.

Domestic data showed that home sales slowed further last month. Resales of Canadian homes fell 2.3 per cent in November from October, the Canadian Real Estate Association said.

Investors are also awaiting Canadian inflation data on Wednesday, which could help guide expectations for additional interest rate hikes from the Bank of Canada. Chances of a hike as soon as January have tumbled to less than 10 per cent from about 60 per cent before a dovish interest rate announcement from the central bank earlier this month.

Still, speculators have cut their bearish bets on the Canadian dollar for the first time in five weeks, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Dec. 11, net short positions had dipped to 11,669 contracts from 12,936 a week earlier.

Canadian government bond prices were higher across a flatter yield curve, with the two-year up 1.5 cents to yield 2.013 per cent and the 10-year rising 9 cents to yield 2.09 per cent.