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Canadian dollar falls 0.3% against greenback

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Touches weakest since February 12 at 1.4316

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Price of U.S. oil falls 2.8%

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Bond yields ease across the curve

By Fergal Smith

TORONTO, Feb 25 (Reuters) - The Canadian dollar weakened

to a near two-week low against its U.S. counterpart on Tuesday

as oil prices fell and investors grew more worried that U.S.

trade tariffs will be implemented.

The loonie was trading 0.3% lower at 1.43 to the U.S.

dollar, or 69.93 U.S. cents, after touching its weakest intraday

level since February 12 at 1.4316.

"While U.S. growth fears are top of mind for markets, and

are weighing on the U.S. dollar more broadly, CAD has managed to

deliver an even weaker performance in recent days," said Nick

Rees, senior FX market analyst at Monex Europe Ltd.

"To us, this means that the loonie is finally headed in the

right direction, with markets now starting to properly price in

tariff risks facing the Canadian economy."

On Monday, U.S. President Donald Trump said that tariffs on

Canadian and Mexican imports are "on time and on schedule"

despite efforts by the countries to beef up border security and

halt the flow of fentanyl into the U.S. ahead of a March 4

deadline.

"If implemented these tariffs will tip the Canadian economy

into a recession ... With this in mind, we see plenty of scope

left for the loonie to fall further as the week progresses,"

Rees said.

Canada sends about 75% of its exports to the U.S., including

oil, which fell to a two-month low. U.S. crude oil futures

were trading 2.8% lower at $68.75 a barrel.

Canadian bond yields eased across the curve, tracking moves

in U.S. Treasuries as investors sought a refuge in bonds from

signs of deceleration in the U.S. economy and persistent

geopolitical uncertainty.

The 10-year was down 6.8 basis points at 3.005%

after earlier touching its lowest since February 7 at 2.979%.