CANADA FX DEBT-C$ recovers from 7-month low as greenback slides

* Canadian dollar ends at C$1.3384, or 74.72 U.S. cents
    * Loonie touches its weakest since March 9 at C$1.3434
    * Bond prices mixed across the yield curve
    * 10-year yield touches a 10-day high at 1.261 percent

    By Fergal Smith
    TORONTO, Oct 28 (Reuters) - The Canadian dollar strengthened
slightly against its U.S. counterpart on Friday, recovering from
an earlier seven-month low as increased U.S. political
uncertainty pressured the greenback, offsetting lower oil
    For the week, the loonie fell 0.4 percent, pressured by
acknowledgement last week by the Bank of Canada that it had
considered cutting interest rates at its policy meeting.
    Position squaring ahead of the weekend helped lessen
immediate pressure on the Canadian dollar, but technical
indicators and recent movement in yield spreads leave the
currency vulnerable to additional losses, said Jack Spitz,
managing director of foreign exchange at National Bank
    Oil prices fell on doubts over OPEC's planned output cut,
even as data showed U.S. oil drillers cut rigs for the first
time since June. U.S. crude oil futures settled $1.02 lower at
$48.70 a barrel.
    Oil is one of Canada's major exports.
    The U.S. dollar fell against a basket of major
currencies after the Federal Bureau of Investigation said it
would probe additional emails related to Democratic presidential
candidate Hillary Clinton's use of a personal email server while
secretary of state.       
    The Canadian dollar ended at C$1.3384 to the
greenback, or 74.72 U.S. cents, slightly stronger than
Thursday's close of C$1.3387, or 74.70 U.S. cents.
    The currency's strongest level of the session was C$1.3353,
while it touched its weakest since March 9 at C$1.3434.
    The U.S. economy grew at its fastest pace in two years in
the third quarter as a surge in exports and a rebound in
inventory investment offset a slowdown in consumer spending.
    Still, U.S. business spending on equipment dropped for the
fourth straight quarter. Weak U.S. business investment has
hampered a long-awaited pickup in growth of Canada's non-energy
    Speculators trimmed bearish bets on the Canadian dollar,
Commodity Futures Trading Commission data showed. Net short
Canadian dollar positions dipped to 13,324 contracts in the week
ended Oct. 25 from 14,298 in the prior week.
    Canadian government bond prices were mixed across the yield
curve, with the two-year up 3 Canadian cents to yield
0.568 percent and the benchmark 10-year rising 10
Canadian cents to yield 1.227 percent.
    Earlier in the session, the 10-year yield touched its
highest intraday level since Oct. 18 at 1.261 percent.

 (Reporting by Fergal Smith; Editing by Chris Reese)