The Canadian dollar weakened against the greenback on Thursday, and the yield on benchmark government debt climbed. The loonie was trading 0.2% lower at C$1.4395 to the greenback, or 69.47 U.S. cents,

The outperforming U.S. economy, which is pushing U.S. yields higher — well above yields in Canada — is attracting more investments south of the border. There’s also a widening differential in monetary policy between the Bank of Canada and the U.S. Federal Reserve, Schamotta said.

The Canadian dollar weakened against its U.S. counterpart on Tuesday, but the move was modest ahead of the Christmas Day holiday and as investors awaited clarity on the position of Canadian Prime Minister Justin Trudeau.