* C$1.3173 buys one U.S. dollar
* Bond prices lower across the maturity curve
By Alastair Sharp
TORONTO, Aug 7 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as employment reports
from both countries kept their divergent monetary policy paths
on track.
The loonie, as Canada's currency is colloquially known, has
lost almost 10 percent of its value since May. The central bank
has cut rates twice this year as a plunge in the price of oil
batters the country's energy industry.
The Canadian economy added 6,600 jobs in July, above the
average forecast of economists, but the number of full-time jobs
declined.
U.S. employment rose at a solid clip in July and wages
rebounded after unexpectedly stalling in the prior month, signs
of an improving economy that could open the door to a Federal
Reserve interest rate increase in September.
"Going into the report it (the Canadian dollar) was quite a
bit stronger, and it's since lost all that ground that it had,"
said Doug Porter, chief economist at BMO Capital Markets.
"I think some of that is just more reflective of a solid
U.S. report today that keeps the Fed on track."
The Canadian dollar CAD=D4 was trading at C$1.3173 to the
greenback, or 75.91 U.S. cents, weaker than Thursday's close of
C$1.3108, or 76.29 U.S. cents.
U.S. crude CLc1 prices were down 1 percent at $44.20 a
barrel, while Brent crude LCOc1 was off 1.2 percent at
$48.92.
Canadian government bond prices were mostly lower across the
maturity curve, with the two-year CA2YT=RR down 2 Canadian
cents to yield 0.445 percent and the benchmark 10-year
CA10YT=RR up 8.5 Canadian cents to yield 1.442 percent.