April 17, 2020 / 1:26 PM / 4 months ago

CANADA FX DEBT-C$ pares weekly loss as plans roll out to reopen economies

    * Canadian dollar rises 0.1% against the greenback
    * The loonie trades 1.2% lower for the week
    * Brent crude oil futures         rise 0.4%
    * Canadian bond yields trade mixed across the curve

    TORONTO, April 17 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Friday, with the currency
clawing back some of this week's decline as plans to gradually
reopen economies hit by the coronavirus outbreak bolstered risk
appetite.
    At 8:53 a.m. (1253 GMT), the Canadian dollar          was
trading 0.1% higher at 1.4063 to the greenback, or 71.11 U.S.
cents. The currency, which on Thursday hit its weakest intraday
level since April 6 at 1.4180, traded in a range of 1.4005 to
1.4118.
    For the week, the loonie was on track to decline 1.2%.
    World stock markets          rose and were on track for a
second straight week of gains after U.S. President Donald Trump
laid out plans to gradually reopen the coronavirus-hit American
economy following similar moves elsewhere.             
    Canada sends about 75% of its exports to the United States.
    Once the coronavirus outbreak is over, it could take the
Canadian economy a couple of years to make up the lost ground
caused by business and industry shutdowns, Bank of Canada
Governor Stephen Poloz said on Thursday.             
    The Bank of Canada has slashed interest rates by 150 basis
points since March and begun buying Canadian government bonds.
On Wednesday, the central bank said it would broaden its
asset-purchase, or quantitative easing, program to include
provincial and corporate debt.              
    Canada's economy could be hit particularly hard because it
is a major producer of oil, which has collapsed since January.  
 
    Brent crude oil futures         rose 0.4% to $27.93 a barrel
on Friday.             
    Canadian government bond yields were mixed across the curve.
The 10-year dipped 1.2 basis points to 0.603%, while it was down
about 16 basis points for the week.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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