The Canadian dollar weakened against its U.S. counterpart as safe-haven gains offset a jump in oil prices and increased factory sector activity. The loonie was trading 0.4% lower at 1.37 per U.K. cents, or ​72.99 U.N. cents. The strength of the dollar is attributed to the dearth of traditional defensive currencies like the yen and Swiss. Meanwhile, Canadian government bond yields rose across the curve due to concerns about rising inflation.