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CANADA FX DEBT-C$ retreats from near 2-week high as oil falls

Published 2017-10-12, 09:55 a/m
Updated 2017-10-12, 10:00 a/m
© Reuters.  CANADA FX DEBT-C$ retreats from near 2-week high as oil falls

* Canadian dollar at C$1.2477, or 80.15 U.S. cents

* U.S. crude CLc1 prices slide 1.85 percent

* Loonie touches its strongest intraday since Sept. 29

* Bond prices higher across the yield curve

TORONTO, Oct 12 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier near two-week high, as oil fell and the greenback rose against a basket of major currencies.

Prices of oil, one of Canada's major exports, slipped as U.S. fuel inventories rose despite efforts by the Organization of the Petroleum Exporting Countries to cut production. crude CLc1 prices were down 1.85 percent at $50.35 a barrel.

The U.S. dollar got a boost from data showing a rise in producer prices. On Wednesday, the greenback had retreated after minutes from the latest Federal Reserve meeting showed that some officials worried about persistent low inflation.

At 9:41 a.m. ET (1341 GMT), the Canadian dollar CAD=D4 was trading at C$1.2477 to the greenback, or 80.15 U.S. cents, down 0.1 percent.

The currency's weakest level of the session was C$1.2490, while it touched its strongest since Sept. 29 C$1.2434.

In domestic data, new home prices rose less than expected in August as prices were unchanged in a number of markets, including the cities of Toronto and Vancouver, which have been the country's hottest regions, Statistics Canada said. data showed that prices for repeat sales of single-family homes declined 0.8 percent in September from the month before. It was the first monthly decline since January 2016 and the biggest since September 2010. government bond prices were higher across the yield curve, with the two-year CA2YT=RR up 2.1 Canadian cents to yield 1.568 percent and the 10-year CA10YT=RR rising 9 Canadian cents to yield 2.101 percent.

Bank of Canada Senior Deputy Governor Carolyn Wilkins will participate at 3:15 p.m. ET (1915 GMT) on a panel discussing the future of paper currency at the annual meeting of the Institute of International Finance.

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