CANADA FX DEBT-C$ weakens against firmer greenback as oil tumbles
* Canadian dollar at C$1.3459, or 74.30 U.S. cents * Bond prices lower across the yield curve TORONTO, Nov 29 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil tumbled on doubts that leading exporters will agree a deal to cut crude output and the greenback gained against a basket of major currencies. The Organization of the Petroleum Exporting Countries were set to meet in Vienna on Wednesday, aiming to implement a deal outlined in September to cut output. But key OPEC members appeared to disagree over details of the plan. U.S. crude prices were down 3.80 percent at $45.29 a barrel. Oil is one of Canada's major exports. Gains for the U.S. dollar came as data showed the U.S. economy grew faster than initially thought in the third quarter. In domestic data, Canada's current account deficit narrowed to C$18.3 billion in the third quarter from a revised C$19.02 billion in the second quarter as exports picked up, Statistics Canada said. At 9:24 a.m. EST (1424 GMT), the Canadian dollar was trading at C$1.3459 to the greenback, or 74.30 U.S. cents, weaker than Monday's close of C$1.3421, or 74.51 U.S. cents. The currency's strongest level of the session was C$1.3401, while its weakest was C$1.3481. Many of the uncertainties surrounding the economic outlook that the Bank of Canada faced at its last policy decision still remain, Governor Stephen Poloz said on Monday. The central bank considered an interest rate cut last month before holding its policy rate steady at 0.50 percent. It last cut rates in July 2015. The market is too complacent about the prospect of further interest rate cuts from the Bank of Canada, some economists said, as an uncertain outlook for the NAFTA trade accord risks derailing an expected pick-up in Canada's business spending. Speculators cut bearish bets on the Canadian dollar for the second straight week, according to Commodity Futures Trading Commission data on Monday. Net short Canadian dollar positions fell to 17,462 contracts in the week ended Nov. 22 from 18,599 the prior week. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year bond fell 3 Canadian cents to yield 0.676 percent and the benchmark 10-year declined 18 Canadian cents to yield 1.545 percent. Last week, the 10-year yield touched an 11-month high at 1.614 percent as investors bet that the policies of U.S. President-elect Donald Trump will lead to higher inflation. Canada's gross domestic product data for the third quarter is due on Wednesday. (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
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