Canadian dollar weakens 0.1 against the greenback
Loonie trades in a range of 1.3548 to 1.3598
Price of U.S. oil settles 1.4 lower
Canadian bond yields fall across the curve

TORONTO, April 9 Reuters The Canadian dollar edged lower against its U.S. counterpart on Tuesday as oil prices fell and investors priced in some risk that the Bank of Canada would signal the start of an interest rate cutting campaign at this week39;s policy decision.

Money markets expect the Canadian central bank to leave its benchmark rate on hold at a 22year high of 5 on Wednesday but to then begin cutting in June.

Even if the Bank of Canada does not cut rates tomorrow, the market seems to be positioned for either a dovish comment or further weakness in the Canadian dollar, said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC.

Speculators have raised their bearish bets on the Canadian dollar to the highest since December, data from the U.S. Commodity Futures Trading Commission showed on Friday.

The case for a rate cut is building … inflation has fallen more than expected for the past two months and the unemployment rate is up to 6.1 from 5 a year ago, Chandler said.

The Canadian dollar was trading 0.1 lower at 1.3585 to the U.S. dollar, or 73.61 U.S. cents, after trading in a range of 1.3548 to 1.3598. On Friday, it touched a threemonth low at 1.3647.

U.S. crude oil futures settled down 1.4 at 85.20 a barrel, giving back some recent gains for a second day. Oil…