CANADA FX DEBT-C$ pulls back from 4-week high as oil prices dip

Published 2017-08-29, 09:59 a/m
© Reuters.  CANADA FX DEBT-C$ pulls back from 4-week high as oil prices dip
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* Canadian dollar at C$1.2500, or 80.00 U.S. cents

* Loonie touches its strongest since July 31 at C$1.2440

* Bond prices higher across flatter yield curve

* 10-year yield touches its lowest intraday since July 6

TORONTO, Aug 29 (Reuters) - The Canadian dollar pulled back from a four-week high against its U.S. counterpart on Tuesday as oil prices dipped, while the greenback lost ground broadly as investors weighed a North Korean missile test.

The U.S. dollar .DXY fell to its lowest level since January 2015 against a basket of major currencies, while the Swiss franc and the Japanese yen climbed after North Korea fired a missile over northern Japan, sapping investors' demand for risky assets, including stocks. of oil, one of Canada's major exports, fell as the market grappled with the shutdown of some 13 percent of U.S. refining capacity after a hurricane ripped through the heart of the country's oil industry. crude CLc1 prices were down 0.52 percent at $46.33 a barrel.

At 9:38 a.m. ET (1338 GMT), the Canadian dollar CAD=D4 was nearly unchanged at C$1.2500 to the greenback, or 80.00 U.S. cents.

The currency's weakest level of the session was C$1.2536, while it touched its strongest since July 31 at C$1.2440.

Canadian producer prices declined by 1.5 percent in July from June on lower prices for motorized and recreational vehicles, Statistics Canada said. government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries, boosted by safe-haven buying. two-year CA2YT=RR price rose 6 Canadian cents to yield 1.234 percent and the 10-year CA10YT=RR climbed 51 Canadian cents to yield 1.808 percent. The 10-year yield touched its lowest intraday level since July 6 at 1.805 percent.

Canada's gross domestic product data for the second quarter is due on Thursday.

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