CANADA FX DEBT-C$ bounces off 3-week low, helped by oil price bump
* Canadian dollar at C$1.3221, or 75.64 U.S. cents * Bond prices moderately higher across the maturity curve TORONTO, Oct 28 (Reuters) - The Canadian dollar gained against its U.S. counterpart on Wednesday but remained well above the C$1.32 level it crashed through a day earlier, as a bump in chronically weak oil prices provided support for the commodity-linked currency. * At 9:09 a.m. ET (1309 GMT), the Canadian dollar was trading at C$1.3221 to the greenback, or 75.64 U.S. cents, stronger than Tuesday's official close of C$1.3266, or 75.38 U.S. cents. * The currency's strongest level of the session was C$1.3225, while its weakest level was C$1.3281. It had previously not been above C$1.32 since Oct. 2. * The U.S. Federal Reserve is expected to hold rates steady when it announces its policy decision at 2 p.m. ET (1800 GMT), while investors look for signs pointing to either a hike later this year or a delay until next year. * U.S. crude prices were up 0.86 percent to $43.57 a barrel, while Brent added 0.62 percent to $47.10. * The Canadian dollar was outperforming all of its key currency counterparts except the Swedish crown, after that country's central bank expanded its asset purchase program but declined to cut interest rates. * The loonie, as Canada's currency is colloquially known, is expected to trade between C$1.3190 and C$1.3290 against the U.S. dollar on Wednesday, according to RBC Capital Markets. * Canadian government bond prices were moderately higher across the maturity curve, with the two-year price up half a Canadian cent to yield 0.491 percent and the benchmark 10-year adding 3 Canadian cents to yield 1.41 percent. * The Canada-U.S. two-year bond spread was -14.2 basis points, while the 10-year spread was -61.8 basis points. (Reporting by Alastair Sharp Editing by W Simon)
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