CANADA FX DEBT-C$ retreats with oil prices after OPEC statement

(Adds comment, details, closing figures)
    * Canadian dollar at C$1.1332 or 88.25 U.S. cents
    * Bond prices mostly higher across the maturity curve

    By Solarina Ho
    TORONTO, Nov 27 (Reuters) - The Canadian dollar extended
losses against the U.S. dollar on Thursday after OPEC's
announcement that it would not cut crude output levels sent oil
prices plunging to new four-year lows.
    Saudi Arabia blocked calls from poorer members of the
Organization of the Petroleum Exporting Countries (OPEC) to cut
production to stem a slide in global prices. Canada is a major
exporter of crude. [IE:nL6N0TH14H] 
    "Oil is definitely the main driver in the price action in
the loonie today," said Scott Smith, senior market analyst at
Cambridge Mercantile Group in Calgary. He noted, however, that
the currency's drop may have been a little overdone due to the
lack of liquidity in the market because of the U.S. Thanksgiving
Day holiday.
    "On the grander scheme of things, the down draft in oil is
likely to continue, and probably likely to put further pressure
on the loonie in the short term as well," he said.
    The Canadian dollar finished at C$1.1332 to the
greenback, or 88.25 U.S. cents, almost one Canadian cent down
from Wednesday's close of C$1.1236, or 89.00 U.S. cents, and its
weakest level in a week.
    Markets are likely to stay quiet on Friday with many
participants in the United States taking the day off. This could
mean further exaggerated moves when Canada reports gross
domestic product figures for the third quarter.
    Smith said the Canadian dollar could see some strength on
Friday if the more robust Canadian economic data seen recently
translate into a jump in GDP, but he said the economy is still
lagging that of the United States overall.
    "Obviously there's a divergence in growth trajectories
between the two economies," Smith said, noting the Canadian
dollar could see further pressure going forward as a result.
    Canadian government bond prices were mostly higher across
the maturity curve with the two-year up 8 Canadian
cents to yield 1.002 percent and the benchmark 10-year
 rising 32 Canadian cents to yield 1.899 percent.

 (Reporting by Solarina Ho; Editing by Peter Galloway)