April 23, 2019 / 1:34 PM / 3 months ago

CANADA FX DEBT-Canadian dollar hits 4-week low ahead of BoC rate decision

    * Loonie falls 0.4% against the U.S. dollar
    * Canadian wholesale rises by 0.3 percent in February 
    * Price of U.S. oil increases 0.3%
    * Canadian bond prices edge higher across the yield curve

    TORONTO, April 23 (Reuters) - The Canadian dollar weakened
to a nearly four-week low against its U.S. counterpart on
Tuesday as the greenback broadly climbed and as investors
awaited a Bank of Canada interest rate decision on Wednesday.   
    
    The U.S. dollar        rose against a basket of major
currencies, supported by this month's rise in U.S. bond yields.
            
    The Bank of Canada is expected to hold its benchmark
interest rate steady at 1.75% on Wednesday and for the rest of
this year, with calls for the next hike in early 2020 resting on
a knife's edge, a Reuters poll showed.             
    At 9:12 a.m. (1312 GMT), the Canadian dollar          was
trading 0.4% lower at 1.3399 to the greenback, or 74.63 U.S.
cents. The currency touched its weakest since March 29 at
1.3413.
    The decline for the loonie came despite a nearly six-month
high for the price of oil, one of Canada's major exports, after
Washington announced all waivers on imports of sanctions-hit
Iranian oil would end next week, pressuring importers to stop
buying from Tehran.             
    U.S. crude        prices were up 0.3% at $65.77 a barrel.
    Canadian wholesale trade increased by 0.3 percent in
February from January on stronger sales in the motor vehicle and
parts subsector, Statistics Canada said. Analysts surveyed by
Reuters had forecast a 0.1 percent increase.             
    Canadian government bond prices edged higher across the
yield curve in sympathy with U.S. Treasuries. The two-year
           was up 1.5 Canadian cents to yield 1.612% and the
10-year             gained 2 Canadian cents to yield 1.785%.    

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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