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CANADA FX DEBT-C$ breaks through C$1.34 as global growth worries drag

Published 2015-09-24, 10:16 a/m
CANADA FX DEBT-C$ breaks through C$1.34 as global growth worries drag
USD/CAD
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3373 or 74.78 U.S. cents
* Bond prices higher across the maturity curve

By Solarina Ho
TORONTO, Sept 24 (Reuters) - The Canadian dollar tumbled
Thursday to its weakest against the U.S. dollar since June 2004,
as concerns about global growth dominated markets following rate
cuts in Norway and Taiwan.
The loonie, which broke through C$1.34 during the session,
echoed losses among other commodities-linked currencies.
Norway and Taiwan's central banks both cut their benchmark
interest rate on Thursday. Taiwan's move, the first since 2009,
comes as it faces a slowdown in China and weaker global demand
prospects for its technology exports.
Norway, which said more cuts to prop the economy could be on
tap, saw its currency hit a 13-year low against the greenback.
"(Global growth concerns) compounded itself yesterday with
an almost 5 percent drop in oil prices. Overnight, there was
more of the same theme when Taiwan and Norway both cut," said
Mark Chandler, head of Canadian fixed income and currency
strategy at RBC Capital Markets.
"That underscored concerns about global growth and concerns
about oil prices and neither one of those is favorable for
Canada."
* At 10:00 a.m. EDT (1400 GMT), the Canadian dollar
CAD=D4 was trading at C$1.3373 to the greenback, or 74.78 U.S.
cents, weaker than the Bank of Canada's official close of
C$1.3347, or 74.92 U.S. cents on Wednesday.
* The currency, which broke through a key barrier level on
Wednesday following slumping oil prices and disappointing
domestic retail sales data, weakened to as low as C$1.3417, or
74.53 U.S. cents, on Thursday.
* Data showed that U.S. business investment plans fell
slightly last month, while the number of Americans filing for
new jobless benefits was little changed last week.
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* Investors await a speech later on Thursday by Federal
Reserve Chair Janet Yellen. A reiteration of Fed remarks from
last week on global growth worries could trigger further losses.
* Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 5.7
Canadian cents to yield 0.495 percent and the benchmark 10-year
CA10YT=RR rising 59 Canadian cents to yield 1.428 percent.
* The Canada-U.S. two-year bond spread was -17.0 basis
points, while the 10-year spread was -65.6 basis points.

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