August 11, 2016 / 1:47 PM / 4 years ago

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
    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.
    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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