CANADA FX DEBT-Loonie dips but beats G10 peers amid U.S. political uncertainty

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar weakens 0.2% against the greenback
    * Loonie's decline was smallest among G10 currencies
    * Price of U.S. oil decreases 1.4%
    * Canadian bond prices fall across the yield curve

    By Fergal Smith
    TORONTO, Sept 25 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Wednesday but fared better than
its G10 peers as investors worried about U.S. political
    At 4:23 p.m. (2023 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3264 to the greenback, or 75.39 U.S.
cents, which was the smallest decline among G10 currencies.
    After notching on Tuesday its strongest intraday level in
more than a week at 1.3234, the Canadian dollar traded in a
range of 1.3236 to 1.3288.
    The loonie has become less volatile than some other
currencies because domestic economic data this year has been
"somewhat strong," said Bipan Rai, North America head of FX
Strategy at CIBC Capital Markets.    
    "In the G10 space, Canada has some of the highest rates and
if you are a foreign investor, that appeals to you," Rai said.
    Canada's economy expanded at an annualized rate of 3.7% in
the second quarter, while the Bank of Canada has left interest
rates on hold this year even as many central banks, including
the U.S. Federal Reserve, have eased.                         
    The U.S. dollar        rallied against a basket of major
currencies as investors were drawn to its safe-haven appeal a
day after news of the launch of a formal impeachment inquiry
into U.S. President Donald Trump drove a sharp move lower in
risky assets.             
    With the inquiry launched, Trump voiced skepticism over
whether House of Representatives Speaker Nancy Pelosi would hold
a vote on the new U.S-Mexico-Canada trade agreement (USMCA).
Canada sends about 75% of its exports, including oil, to the
United States.             
    The price of oil        logged a second straight day of
losses, down 1.4%, after U.S. crude inventories unexpectedly
rose and on worries that demand could fall due to the U.S.-China
trade conflict.             
    Canada's Jagmeet Singh, facing a rout of his left-wing New
Democratic Party (NDP) in next month's election, may have
revived his party's fortunes with his emotional response to
Prime Minister Justin Trudeau's blackface picture.             
    Should the NDP or the Greens emerge from the Oct. 21
election holding the balance of power, that could make planned
expansion of the Trans Mountain oil pipeline less likely.
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries, with the 10-year
            falling 89 Canadian cents to yield 1.402%.
    Earlier in the session, the 10-year yield touched its lowest
level since Sept. 6 at 1.289%.   

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and Peter