Loonie slides below 73 cents US

The Canadian dollar slipped below 73 cents US on Tuesday amid weaker oil prices and strength for the U.S. greenback.

After touching 14-month lows, the loonie finished the day at 72.89 cents US, down from Monday's finish of73.21 cents US.

The U.S. dollar gained ground, rising to a six-week high against the Japanese yen. Investors bid the greenbackup, apparently shrugging off weak U.S. factory activity and inflation reports out on Monday and soft U.S. GDP figures out last week.

Analysts say the U.S. dollar is rising as traders expect the Federal Reserve will signal a June interest rate when it makes a statement on Wednesday, Reuters reported.

Meanwhile, the price of oil, which is closely tied to the Canadian dollar, sagged. The June crude contract
lost $1.18 US to end at $47.66 US per barrel.

• The U.S. will not drown the world in oil, forecaster says

"I think until that OPEC meeting at the end of the month, we're going to see ebb and flow (in oil prices)," said Colum McKinley, a portfolio manager on the Canadian equities team at CIBC Asset Management.

Members of the Organization of the Petroleum Exporting Countries will meet in Vienna on May 25 to decide whether or not they will extend their agreement from last November to curb crude production.

Toronto's main stock index moved up on the strength of its health-care sector as Valeant Pharmaceuticals International Inc. rose nearly seven per cent.

The Toronto Stock Exchange's S&P/TSX composite index advanced 44.02 points to 15,619.65.

Valeant was the third best performing stock of the index, rising 6.73 per cent or 89 cents to $14.11 for a second straight day of gains.

The day before, the Quebec-based drugmaker's shares jumped 4.51 per cent after it announced it trimmed its hefty debt by an extra $220 million US.Since the first quarter of 2016, Valeant says it has reduced its $32-billion US debt by $3.6 billion US.

• Valeant shareholders pressure company at annual meeting

On Tuesday, CEO Joseph Papa told shareholders at the company's annual general meeting that the gathering marked the first day of a new era for Valeant. He said he remained committed to cutting the company's remaining debt by US$5 billion by next February.

The growth from the health-care sector was offset by weakness in the financial and energy sectors.

While embattled alternative mortgage lender Home Capital Group Inc.rebounded with a 11.35 per cent or 79 cent jump in shares to $7.75, many other financial institutions including some of Canada's biggest banks saw their shares slip in worth.

In New York, the Dow Jones industrial average rose 36.43 points to 20,949.89, the S&P 500 index advanced 2.84 points to 2,391.17, and the Nasdaq composite index added 3.77 points to a record-high 6,095.37.