The U.S. dollar dropped against its Canadian counterpart on Tuesday, despite the release of upbeat U.S. data, as lower expectations for a rate by the Federal Reserve before the end of the year continued to weigh broadly on the greenback.

The Commerce Department said personal spending, which measures how much Americans spend, increased 0.4% in June from a month earlier. Economists had forecast an increase of 0.3%.

Household spending, which accounts for more than two-thirds of economic output in the U.S., also climbed 0.4% in May.

Personal income rose 0.2%, falling short of forecasts of 0.3% growth.

But the greenback remained under pressure after Dallas Fed head Robert Kaplan urged caution on raising U.S. interest rates amid a raft of risks facing the global economy.

Expectations for a U.S. rate hike before the end of year also declined last week’s surprisingly weak U.S. second quarter growth data.

Meanwhile, demand for the commodity-related Canadian dollar strengthened as oil prices moved higher on Tuesday, although supply glut concerns persisted.