CANADA FX DEBT-C$ dips as oil prices and U.S. stocks lose ground

Published 2018-02-13, 09:27 a/m
© Reuters.  CANADA FX DEBT-C$ dips as oil prices and U.S. stocks lose ground
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* Canadian dollar at C$1.2592, or 79.42 U.S. cents

* U.S. crude oil falls nearly 1 percent

* Bond prices higher across the yield curve

TORONTO, Feb 13 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday and underperformed versus other major currencies as oil prices and U.S. stock index futures fell.

At 9:13 a.m. EST (1413 GMT), the Canadian dollar CAD=D4 traded 0.1 percent lower at C$1.2592 to the greenback, or 79.42 U.S. cents. The currency traded in a range of C$1.2567 to C$1.2606.

The price of oil, one of Canada's major exports, declined after a forecasting agency estimated world crude supply could overtake demand this year, potentially undermining producer efforts to curb supply. crude CLc1 prices were down nearly 1 percent at $58.72 a barrel.

U.S. stock futures pointed to another dip at the open for Wall Street, potentially halting two days of gains that had somewhat eased investors' nerves about a burgeoning market correction. currencies such as the Canadian dollar tend to underperform when stocks fall.

The U.S. dollar .DXY lost ground against a basket of major currencies including the Japanese yen amid speculation the Bank of Japan could be close to dialing back record levels of monetary stimulus. government bond prices were higher across the yield curve, with the two-year CA2YT=RR up 1.5 Canadian cents to yield 1.776 percent and the 10-year CA10YT=RR rising 13 Canadian cents to yield 2.322 percent.

The Canadian Real Estate Association will release its monthly home sales report on Thursday. Canada's manufacturing sales report for December is due on Friday.

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