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CANADA FX DEBT-C$ weakens as oil dips, greenback climbs
May 9, 2017 / 1:38 PM / 3 months ago

CANADA FX DEBT-C$ weakens as oil dips, greenback climbs

3 Min Read

    * Canadian dollar at C$1.3725, or 72.86 U.S. cents
    * Bond prices lower across yield curve

    TORONTO, May 9 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as oil priced dipped and
the greenback climbed against a basket of major currencies.
    The U.S. dollar        posted broad gains as foreign
exchange markets swung back to bets on improving growth and
tighter monetary policy. The pickup in investor sentiment has
been bolstered by historically low U.S. stock market volatility
and last weekend's French presidential election result.
            
    U.S. crude        prices were down 0.37 percent at $46.26 a
barrel, pressured by a rise in U.S. crude output that has shaken
investors' faith in the ability of Organization of the Petroleum
Exporting Countries to rebalance the market.             
    Oil is one of Canada's major exports.
    At 9:20 a.m. ET (1320 GMT), the Canadian dollar          was
trading at C$1.3725 to the greenback, or 72.86 U.S. cents, down
0.3 percent, according to Reuters data.
    The currency traded in a range of C$1.3671 to C$1.3743.
    The loonie hit a 14-year low on Friday at C$1.3793. It has
been pressured recently by lower commodity prices, concerns
about a possible North American Free Trade Agreement
renegotiation and investor wariness about how the troubles of
alternative lender Home Capital Group Inc          could impact
Canada's real estate market.
     Home Capital said on Tuesday that an unnamed third party
intends to buy up to C$1.50 billion in mortgages, an offer that
comes as Canada's biggest non-bank lender attempts to halt
customer withdrawals.                
    Losses for the Canadian dollar came as data showed the value
of domestic building permits tumbled by 5.8 percent in March
from February.             
    British Columbians head to the polls after a tight election
race between the ruling right-of-center Liberal Party and the
opposition left-leaning New Democratic Party. A loss for the
Liberals could derail big oil and gas projects in the province.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 1.5 Canadian cents to yield 0.717 percent and the 10-year
            declined 31 Canadian cents to yield 1.623 percent.  

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
  
 

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