CANADA FX DEBT-C$ weakens amid falling oil prices, rising trade concerns

 (Adds strategist quote and details throughout, updates prices)
    * Canadian dollar weakens 0.3% against the greenback
    * The loonie touches its lowest point since June 19
    * U.S. crude oil price falls by 4.74% 
    * Canada's 10-year yield hits a near three-year low

    By Levent Uslu
    TORONTO, Aug 7 (Reuters) - The Canadian dollar extended its
losses, falling to a near seven-week low against its U.S.
counterpart on Wednesday, as oil prices dropped and rising trade
tensions worried investors.
    The escalating U.S.-China trade war is adding to economic
headwinds and hurting business sentiment.
    The price of oil, one of Canada's major exports, tumbled
more than 4%, extending recent heavy losses following a surprise
build in U.S. crude stockpiles and fears that demand will shrink
due to Washington's trade war with Beijing.             
    "A perfect storm is definitely what we are seeing in the
Canadian dollar right now where we are receiving shocks from
falling oil prices, rising global trade tensions and financial
turmoil, all at the same time." said Karl Schamotta, director of
 global markets strategy at Cambridge Global Payments.
    At 3:36 p.m. (1936 GMT), the Canadian dollar          was
trading 0.3% lower at 1.3312 to the greenback, or 75.12 U.S.
cents. The currency hit its lowest intraday level since June 19
at 1.3344.
    The downward move of the loonie came despite a pickup in the
pace of purchasing activity in Canada in July, according to Ivey
Purchasing Managers Index (PMI) data. The seasonally adjusted
index rose to 54.2 from 52.4 the previous month, surpassing
analysts' expectations for 53.0.             
    Chances for the Bank of Canada to cut interest rates by at
least 25 basis points this year have climbed to almost 100% from
about 40% after the release of data last week showing the
economy strengthened more than expected in June, the overnight
index swap market indicated.           
    Last month, the Bank of Canada highlighted the risks that
trade wars pose to the global economy as it left its benchmark
interest rate unchanged at 1.75%.             
    New Zealand's          dollar fell heavily on Wednesday
after its central bank stunned markets with an aggressive
interest rate cut, fueling bets on more global easing.
    U.S. crude oil futures        settled 4.7% lower at $51.09 a
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 7 Canadian cents to yield 1.315% and the 10-year
            was up 49 Canadian cents to yield 1.188%.
    The 10-year bond yield hit its lowest intraday level since
October 2016 at 1.127%.

 (Reporting by Levent Uslu
Editing by Nick Zieminski and Jonathan Oatis)