TORONTO, Ontario: The Canadian dollar fell for a third straight week against the U.S. dollar on May 22 as rising gasoline prices linked to the Iran conflict continued to pressure consumers and weigh on spending.

The loonie traded 0.2% lower at 1.3810 per U.S. dollar, or 74.21 U.S. cents, after touching its weakest intraday level since April 13 at 1.3822. The currency ended the week down 0.4%.

Data released on Friday showed Canada's retail sales rose 0.9% in March, beating market expectations. However, much of the increase was driven by higher gasoline prices rather than stronger consumer demand.

In volume terms, retail sales actually declined 0.7%, while preliminary estimates showed sales rising 0.6% in April.

"The war-driven price shock is leaving a mark on Canadian consumers, who have otherwise held in there against elevated economic uncertainty and outright population declines," said Shelly Kaushik, senior economist at BMO Capital Markets.

"The details of the March figures suggest consumer spending will remain under pressure until energy prices normalize," Kaushik added.

The nearly three-month conflict involving Iran has disrupted shipping and energy markets globally, contributing to higher oil and gasoline prices.

Oil, one of Canada's major exports, traded 0.8% lower on May 22 at $95.54 per barrel.

Earlier in the week, Canadian inflation data showed consumer prices rose less than expected in April, easing expectations that the Bank of Canada would raise interest rates further this year.

Meanwhile, the U.S. dollar remained firm against a basket of major currencies as investors weighed the possibility of a deal to end the Middle East conflict and assessed whether the Federal Reserve might raise interest rates if inflation continued to accelerate.

Canadian government bond yields were mixed. The 10-year yield was little changed at 3.552% after reaching a two-year high of 3.744% earlier in the week.

Prime Minister Mark Carney also emphasized Alberta's importance to Canada after the oil-rich province announced plans for a non-binding referendum on whether residents wanted to remain part of the country.