CANADA FX DEBT-C$ touches lowest in nearly 4 months as oil falls

Published 2016-07-26, 09:08 a/m
CANADA FX DEBT-C$ touches lowest in nearly 4 months as oil falls

* Canadian dollar at C$1.3237 or 75.55 U.S. cents

* Bond prices higher across the maturity curve

OTTAWA, July 26 (Reuters) - The Canadian dollar weakened against the greenback on Tuesday for the sixth session in a row, touching its lowest level in nearly four months as oil prices declined.

* The domestic economic calendar was light, but investors were looking ahead to data at the end of the week that is expected to show Canadian economic growth pulled back in May, likely due to the disruption caused by wildfires in Alberta. ECONCA

* U.S. crude CLc1 prices were down 1.53 percent at $42.47 a barrel on concerns of excess supply. O/R

* At 8:56 a.m. EDT (1256 GMT), the Canadian dollar CAD=D4 was trading at C$1.3237 to the greenback, or 75.55 U.S. cents, weaker than the Bank of Canada's official close of C$1.3220, or 75.64 U.S. cents.

* The currency's weakest level was C$1.3244, its lowest since late March.

* The loonie has lost more than 2 percent in July so far, hurt as the price of oil have fallen back toward $40 a barrel after hitting $50 in June.

* Canadian government bond prices were higher across the maturity curve, with the two-year CA2YT=RR price up 1.5 Canadian cents to yield 0.57 percent and the benchmark 10-year CA10YT=RR rising 26 Canadian cents to yield 1.079 percent.

* The Canada-U.S. two-year bond spread was -19.2 basis points, while the 10-year spread was -47.7 basis points.

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