CANADA FX DEBT-C$ hits late-2011 low vs European currencies

Tue Aug 20, 2013 5:06pm EDT
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* C$ at C$1.0389 vs US$, or 96.26 U.S. cents

* Wholesale trade data, oil-price fall push currency lower

* C$ at lowest vs euro, pound and franc since late 2011

By Alastair Sharp

TORONTO, Aug 20 (Reuters) - The Canadian dollar fell to its weakest against the U.S. dollar in nearly two weeks and dropped to its lowest against major European currencies since late 2011 on Tuesday, hurt by weak domestic data and a fall in the price of U.S. crude oil.

The currency also took a hit as Canadian government bond yields fell from highs reached on Monday. Lower yields tend to reduce a currency's appeal because they are less likely to attract international capital flows.

"At the margins all these developments haven't been helpful for the Canadian dollar," said Greg Moore, currency strategist at TD Securities.

Prices for Canadian government debt were higher across the maturity curve, with the two-year bond up 6 Canadian cents to yield 1.192 percent, while the benchmark 10-year bond rose 48 Canadian cents to yield 2.684 percent.   Continued...