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CANADA FX DEBT-C$ slumps to 14-month low after U.S. sets lumber duties

Published 2017-04-25, 09:38 a/m
Updated 2017-04-25, 09:40 a/m
© Reuters.  CANADA FX DEBT-C$ slumps to 14-month low after U.S. sets lumber duties

* Canadian dollar at C$1.3594, or 73.56 U.S. cents

* Loonie hits a 14-month low at C$1.3615

* Bond prices lower across the yield curve

TORONTO, April 25 (Reuters) - The Canadian dollar slumped to a 14-month low against its U.S. counterpart on Tuesday after the United States said it would impose preliminary anti-subsidy duties averaging 20 percent on imports of Canadian softwood lumber.

The move sets a tense tone as the two countries and Mexico prepare to renegotiate the 23-year-old North American Free Trade Agreement. 9:22 a.m. ET (1322 GMT), the Canadian dollar CAD=D4 was trading at C$1.3594 to the greenback, or 73.56 U.S. cents, weaker than Monday's close of C$1.3516, or 73.99 U.S. cents.

The currency's strongest level of the session was C$1.3498, while it touched its weakest since Feb. 25, 2016, at C$1.3615.

Recent weakening in the price of oil, one of Canada's major exports, has added to pressure on the nation's currency amid doubts about the Organization of the Petroleum Exporting Countries' ability to reduce global crude inventories. crude CLc1 was down 0.30 percent at $49.08 a barrel.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 3.5 Canadian cents to yield 0.757 percent, and the 10-year CA10YT=RR declined 27 Canadian cents to yield 1.52 percent.

Canadian retail sales data for February is due on Wednesday. ECONCA

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