CANADA FX DEBT-Loonie falls on rising global political tensions

 (Adds strategist quote and details; updates prices)
    * Canadian dollar falls 0.1% against the greenback
    * U.S. oil prices increase 0.8%
    * Bond prices move higher across the yield curve

    By Levent Uslu
    TORONTO, Aug 12 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Monday, giving up some gains
from the last two sessions, as increased global political
tensions stir investor worries about risky currencies like the
    At 3:55 p.m. (1955 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3239 to the greenback, or 75.53 U.S.
cents. The currency was trading in a range of 1.3207 to 1.325.
    Because Canada exports many commodities, including oil, its
economy faces the risk of being hurt by escalating geopolitical
tensions that could threaten global growth and commodities
    "Markets are concerned about Hong Kong and Argentina ... so
high-risk, growth-sensitive currencies like the Mexican peso,
Australian dollar and Norwegian krone are all weakening, and the
Canadian dollar is also soft, although to a lesser extent than
its peers," said Eric Theoret, a currency strategist at
    Argentine voters signaled they could reject market-friendly
President Mauricio Macri at an election in October and return
the country to interventionist economics.             
    Hong Kong's airport halted flights on Monday, blaming
demonstrators for the disruption, while China said the
anti-government protests that have swept the city over the past
two months had begun to show "sprouts of terrorism."
    Meanwhile, the price of oil, one of Canada's major exports,
was little changed as expectations that major producers would
continue to reduce global supplies ran into worries about
sluggish growth in crude demand due to the U.S.-China trade war.
    U.S. crude oil futures        settled 0.8% higher at $54.93
a barrel.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 10.5 Canadian cents to yield 1.332% and the 10-year
            was up 73 Canadian cents to yield 1.198%.

 (Reporting by Levent Uslu
Editing by Leslie Adler)