for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

CANADA FX DEBT-C$ slides by most in 7 weeks as pandemic spooks investors

 (Adds strategist quotes and details throughout, updates prices)
    * Loonie hits a 3-week low at 1.3333
    * Price of U.S. oil falls 6.2%
    * Canadian bond yields ease across a flatter curve

    By Fergal Smith
    TORONTO, Oct 28 (Reuters) - The Canadian dollar weakened to
a three-week low against its U.S. counterpart on Wednesday, as
investors worried that rising coronavirus cases would slow
global economic recovery and the Bank of Canada underscored the
more uncertain outlook.
    The Canadian dollar        was trading 1% lower at 1.3311 to
the greenback, or 75.13 U.S. cents, its biggest decline since
Sept. 8. It touched its weakest intraday level since Oct. 7 at
1.3333.
    "Today we found out that markets are reluctant to look past
the looming (U.S.) election and pandemic risks," said Adam
Button, chief currency analyst at ForexLive. "There are few
currencies more vulnerable to a global growth slowdown than the
Canadian dollar."    
    Shares around the world          tumbled as coronavirus
infections grew rapidly in Europe and the United States,
igniting fears of possible strict lockdown measures that could
damage already fragile economic recoveries.             
    Canada is a major exporter of commodities, including oil, so
the loonie tends to be sensitive to prospects for global growth.
    U.S. crude        prices were down 6.2% at $37.13 a barrel
as a surge in U.S. crude stocks and rising coronavirus
infections fanned fears of a supply glut and weaker fuel demand.
            
    The Bank of Canada said it expects interest rates to remain
at current record lows until 2023 and reduced the size of its
asset purchase program as it shifted to buying more longer-term
bond. It said that a second wave of coronavirus infections would
have a pronounced impact on near-term economic growth.
            
    "If you were looking for any kind of economic confidence
from the Bank of Canada, you didn't get it," Button said.
    Canadian government bond yields were lower across a flatter
curve, with the 10-year             down 1.3 basis points at
0.584%. 

 (Reporting by Fergal Smith; editing by Jonathan Oatis and
Emelia Sithole-Matarise)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up