March 3, 2020 / 2:59 PM / a month ago

CANADA FX DEBT-Canadian dollar retreats as G7 stops short of stimulus details

    * Canadian dollar weakens 0.4% against the greenback
    * Loonie trades in a range of 1.3319 to 1.3379.
    * Price of U.S. oil increases 2.2%
    * Canadian bond yields fall across the yield curve

    TORONTO, March 3 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday, paring some of the
previous day's gains, as G7 officials stopped short of specific
measures to protect the global economy from the impact of the
coronavirus outbreak.
    At 9:34 a.m. (1434 GMT), the Canadian dollar          was
trading 0.4% lower at 1.3376 to the greenback, or 74.76 U.S.
cents. The currency, which on Friday hit its weakest intraday
level in nearly nine months at 1.3465, traded in a range of
1.3319 to 1.3379.
    Finance ministers and central bank governors from the Group
of Seven said they would use all appropriate policy tools to
achieve strong, sustainable global growth and safeguard against
downside risks posed by the fast-spreading virus.             
    Canada is a major exporter of commodities, including oil, so
a slowdown in the global economy could hurt.
    U.S. crude oil futures        were up 2.2% at $47.79 a
barrel on stimulus hopes and on growing optimism that OPEC will
order deeper output cuts this week.              
    Investors are betting that the Bank of Canada will cut
interest rates on Wednesday for the first time in nearly five
years. Further easing is seen in April, with a total of three
rate cuts expected by the end of the year.
                      
    Canadian government bond yields prices fell across the yield
curve. The 10-year yield             was down 4.3 basis points
at 1.059%. On Monday, it touched its lowest intraday in more
than three years at 1.027%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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