CANADA FX DEBT-C$ edges higher against firmer greenback as oil surges
(Adds analyst comments and details on Trans Mountain pipeline and updates prices) * Canadian dollar ends at C$1.3429, or 74.47 U.S. cents * Loonie touches strongest since Nov. 9 at C$1.3357 * Bond prices lower across a steeper yield curve By Fergal Smith TORONTO, Nov 30 (Reuters) - The Canadian dollar edged higher against its firmer U.S. counterpart on Wednesday as oil prices jumped on a deal by major producers to cut output and data showed the domestic economy grew at the fastest pace in more than two years. Canada's economy grew in the third quarter at an annualized 3.5 percent pace as it benefited from a rebound in oil exports, while stronger-than-expected growth for September suggested the fourth quarter could slow less than anticipated. "It's going to reduce the prospect of any near-term easing by the Bank of Canada," said Paul Ferley, assistant chief economist at Royal Bank of Canada. Meanwhile, the U.S. dollar rallied against a basket of major currencies as strong private payrolls data bolstered expectations for a hawkish Federal Reserve next year. The Canadian dollar performed better than most other G10 currencies because it is tied to the movement in oil prices, said Eric Viloria, currency strategist at Wells Fargo. U.S. crude prices settled more than 9 percent higher at $49.44 a barrel as the Organization of the Petroleum Exporting Countries agreed to curb production for the first time since 2008 in a bid to support prices. Oil is one of Canada's major exports. The Canadian dollar ended at C$1.3429 to the greenback, or 74.47 U.S. cents, slightly stronger than Tuesday's close of C$1.3437, or 74.42 U.S. cents. The currency's weakest level of the session was C$1.3462, while it touched its strongest since Nov. 9 at C$1.3357. For the month, the loonie dipped 0.1 percent. The Canadian government is close to meeting conditions British Columbia has laid out for provincial support of Kinder Morgan Inc's proposal to expand its Trans Mountain pipeline, the province's premier Christy Clark said. Approval by Canada on Tuesday of the plan to expand the pipeline was seen by some market players as supportive of the Canadian dollar. The C$6.8 billion project would nearly triple capacity on the artery to 890,000 barrels a day. Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year price fell 5 Canadian cents to yield 0.700 percent and the benchmark 10-year declined 64 Canadian cents to yield 1.583 percent. Last week, the 10-year yield touched its highest since December at 1.614 percent as investors bet that the United States will pursue policies that boost inflation. (Reporting by Fergal Smith; Editing by Meredith Mazzilli and Jonathan Oatis)
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