CANADA FX DEBT-C$ hits 5-week low as investors eye slowing Fed stimulus

* C$ at C$1.0432 vs US$, or 95.86 U.S. cent
    * Fed's July meeting minutes due out at 2:00 p.m. EDT
    * Fed expected to point to stimulus slowing from September
    * Emerging market currencies sink, helping to drag down C$

    By Alastair Sharp
    TORONTO, Aug 21 (Reuters) - The Canadian dollar weakened to
a five-week low against the U.S. currency on Wednesday, ahead of
the release of U.S. Federal Reserve minutes expected to point
towards an imminent slowing of the central bank's massive
monetary stimulus.
    The loonie, as Canada's currency is colloquially known, also
came under pressure as a string of emerging market currencies
slumped on the assumption that Fed largesse will be curtailed.
    Canada is linked to the fate of emerging markets because of
its heavy reliance on the export of natural resources.
    The minutes of the Fed's most recent policy-making meeting
in July are due to be released at 2:00 p.m. EDT (1800 GMT).
    "We seem to be going into the minutes with the market queued
up for the tapering process to begin in September with a fair
degree of certainty," said Adam Cole, global head of currency
strategy at Royal Bank of Canada.
    "If the minutes leave any uncertainty on that, the risk is
that expectations start to drift away from September and that
leaves the (U.S.) dollar vulnerable, in the short term at
    At 9:02 a.m. (1302 GMT), the Canadian dollar was
trading at C$1.0432 to the greenback, or 95.86 U.S. cents,
compared with C$1.0389, or 96.26 U.S. cents, at Tuesday's North
American close.
    At one point it reached C$1.0448, its weakest since July 11.
    The price of Canadian government debt fell across the
maturity curve. The two-year bond was off 2 Canadian
cents to yield 1.199 percent, while the benchmark 10-year bond
 fell 18 Canadian cents to yield 2.705 percent.