The Canadian dollar slid to its weakest level in nearly two weeks on Tuesday, weighed down by widening Canada-U.S. interest rate spreads and signals from the Bank of Canada that it remains focused on supporting the domestic economy.

The loonie traded 0.2% lower at 1.3840 against the U.S. dollar, or about 72.25 cents U.S., after touching its lowest intraday level since September 12 at 1.3849.

“It’s been a slow grind, but we haven’t really broken out of the range that’s been in place since mid-August,” said Amo Sahota, director at Klarity FX in San Francisco, noting that the growing rate gap has been adding to bearish sentiment.

The spread between Canadian and U.S. 2-year yields widened to roughly 114 basis points, up from 92 basis points at the end of August — making the U.S. dollar more attractive to investors seeking higher returns.

Last week, the Bank of Canada cut interest rates for the first time since March. Governor Tiff Macklem reiterated Tuesday that the central bank will continue to support growth while keeping inflation under control. Markets are currently pricing in about a 50% chance of another cut at the October 29 policy meeting, according to overnight index swaps.

Meanwhile, oil — a key Canadian export — provided some offset, climbing 1.8% to settle at $63.41 a barrel after a stalled deal to resume exports from Iraq’s Kurdistan region.

Canadian bond yields slipped slightly across the curve, with the 10-year falling 0.7 basis points to 3.193%.