CANADA FX DEBT-C$ strengthens as oil price turns higher
* Canadian dollar at C$1.3039, or 76.69 U.S. cents * Bond prices slightly lower across the maturity curve TORONTO, Aug 11 (Reuters) - The Canadian dollar strengthened slightly against its U.S. counterpart on Thursday, firming along with other commodity-linked currencies as oil prices climbed and despite a rate cut from New Zealand's central bank. The Kiwi dollar rose to a one-year peak after a smaller-than-expected quarter-point cut from the Reserve Bank of New Zealand. World shares hovered close to one-year highs, adding to support for Canada's risk-sensitive currency, while oil prices turned positive after losses for the previous two days. U.S. crude prices were up 0.36 percent to $41.86 a barrel. At 9:22 a.m. EDT (1322 GMT), the Canadian dollar was trading at C$1.3039 to the greenback, or 76.69 U.S. cents, stronger than Wednesday's close of C$1.3064, or 76.55 U.S. cents. Still, the currency traded in a narrow range after touching on Wednesday its strongest in three weeks at C$1.2990. The currency's strongest level of the session was C$1.3020, while its weakest was C$1.3080. New home prices in Canada rose 0.1 percent in June from the previous month, following a 0.7 percent monthly increase in May, Statistics Canada said. On a year-over-year basis the index increased 2.5 percent. Canadian government bond prices were slightly lower across the maturity curve, with the two-year bond down 0.5 Canadian cent to yield 0.51 percent and the benchmark 10-year falling 3 Canadian cents to yield 0.995 percent. On Wednesday, the 10-year yield dropped below the 1 percent threshold for the first time in nearly four weeks. (Reporting by Fergal Smith; Editing by Bernadette Baum)
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