CANADA FX DEBT-C$ edges only slightly lower as oil falls
* Canadian dollar at C$1.3082, or 76.44 U.S. cents * Bond prices higher across the yield curve * 10-year yield hits one-week low at 1.694 percent TORONTO, Feb 17 (Reuters) - The Canadian dollar edged only slightly lower against its U.S. counterpart on Friday as oil prices fell, with losses limited as investors awaited clarity on U.S. President Donald Trump's policies on tax and trade. Prices of oil, one of Canada's major exports, were pressured by growing global stocks. U.S. crude prices were down 0.49 percent at $53.10 a barrel. The U.S. dollar headed for its sixth week of losses in the last eight as investors awaited substantive market-friendly news from Trump on tax reform. The imposition of a proposed border adjustment tax would "hit Canadian exports hard," said the C.D. Howe Institute in a research report on Tuesday. Canada sends 75 percent of its exports to the United States. At 9:47 a.m. ET (1447 GMT), the Canadian dollar was trading at C$1.3082 to the greenback, or 76.44 U.S. cents, slightly weaker than Thursday's close of C$1.3080, or 76.45 U.S. cents. The currency traded in a range of C$1.3061 to C$1.3099. On Thursday, TransCanada Corp , Canada's No. 2 pipeline operator, filed an application with Nebraska authorities to route its Keystone XL pipeline through the state, after Trump cleared the way for the project last month. If constructed, Keystone would give oil producers in Canada a quicker route to send crude to U.S. Gulf Coast refiners. Canadian government bond prices rose across the yield curve in sympathy with U.S. Treasuries as concerns over the French election and weak data in Britain supported demand for safe-haven assets. The two-year price rose 3.5 Canadian cents to yield 0.778 percent and the 10-year climbed 27 Canadian cents to yield 1.712 percent. The 10-year yield touched its lowest intraday level since Feb. 10 at 1.694 percent. Foreign investors bought C$10.23 billion worth of Canadian securities in December, sealing a new annual record for purchases of bonds, stocks and money market paper, Statistics Canada said. (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
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