CANADA FX DEBT-C$ holds its ground vs broadly stronger greenback
* Canadian dollar at C$1.3380, or 74.74 U.S. cents * Bond prices higher across the yield curve TORONTO, March 29 (Reuters) - The Canadian dollar was little changed on Wednesday against its broadly stronger U.S. counterpart as prices of oil, one of Canada's major exports, rose for the second straight day. Despite an increase in U.S. crude inventories, oil added to gains, benefiting from Libyan supply disruptions and expectations that an output cut led by the Organization of Petroleum Exporting Countries would be extended. U.S. crude prices were up 0.27 percent at $48.5 a barrel. The U.S. dollar rose against a basket of major currencies after a Reuters report that European Central Bank policymakers were wary of making any changes to their policy message in April pressured the euro. At 9:19 a.m. ET (1319 GMT), the Canadian dollar was trading at C$1.3380 to the greenback, or 74.74 U.S. cents, slightly stronger than Tuesday's close of C$1.3383, or 74.72 U.S. cents. The loonie traded in a range of C$1.3356 to C$1.3401. On Tuesday, it touched C$1.3415, its weakest point in nearly two weeks. The steady bias on Wednesday for the currency came one day after the Bank of Canada stuck to its cautious tone. The nation's economy would tip into recession if interest rates were raised today, said Stephen Poloz, the central bank's governor. Still, economists expect Canada's gross domestic product to show a 0.3 percent rise for January, which could set the stage for a stronger performance in the first quarter than initially expected. The January GDP data is due for release on Friday. Canadian government bond prices were higher across the yield curve, with the two-year up 3 Canadian cents to yield 0.725 percent and the 10-year rising 20 Canadian cents to yield 1.604 percent. On Tuesday, the two-year yield hit its lowest in nearly seven weeks at 0.719 percent. (Reporting by Fergal Smith; Editing by Lisa Von Ahn)
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