CANADA FX DEBT-C$ near 11-year lows on oil, market gloom
(Updates throughout with closing figures, FX strategist comment, details) * Canadian dollar ends at C$1.3394, or 74.66 U.S. cents * Bond prices higher across the maturity curve By Solarina Ho TORONTO, Sept 28 (Reuters) - The Canadian dollar flirted near 11-year lows against the greenback on Monday as volatile crude oil prices took a negative turn and a general gloom over global growth worries cast a pall over markets. U.S. crude prices settled down $1.27, or 2.78 percent at $44.43 a barrel on Monday, hurt in part by hefty losses on Wall Street. The price of crude, a major Canadian export, has plunged by more than half in the last year over excess supply and soft demand concerns, dragging the loonie along some 20 percent lower in that time. "It's crude and risk appetite in general," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "Not a ton of new data or information over the weekend that really justifies the declines, but it's there and it's very troubling to asset markets." The Canadian dollar finished at C$1.3394 to the U.S. dollar, or 74.66 U.S. cents, softer than the Bank of Canada's official close of C$1.3316, or 75.10 U.S. cents on Friday. This was also its weakest close since June, 2004. The loonie traded between C$1.3319 and C$1.3395 during the session. Last week, it briefly touched C$1.3417, or 74.53 U.S. cents in intraday trading. Markets have been nervous over the state of China's economy along with other emerging markets and are anxiously awaiting upcoming data for more clues on the economic health of one of the world's largest commodity consumers. Closer to home, potentially market-moving reports on tap this week include Canadian gross domestic product figures for July, due out on Wednesday, and U.S. labor data for September on Friday. Canadian government bond prices were higher across the maturity curve, with the two-year price up 7.5 Canadian cents to yield 0.506 percent and the benchmark 10-year rising 78 Canadian cents to yield 1.442 percent. The Canada-U.S. two-year bond spread was -16.6 basis points, while the 10-year spread was -65.5 basis points. (Reporting by Solarina Ho; Editing by Lisa Von Ahn and Meredith Mazzilli)
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