December 5, 2018 / 2:28 PM / a year ago

CANADA FX DEBT-C$ dips ahead of Bank of Canada interest rate decision

    * Canadian dollar eases 0.1 percent against the greenback
    * Price of U.S. oil rises 0.1 percent
    * Canadian bond prices trade lower across the yield curve

    TORONTO, Dec 5 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Wednesday ahead of an interest
rate decision by the Bank of Canada, as the greenback broadly
declined and global stocks weakened on a renewal of worries
about trade tensions.
    The U.S. dollar        dipped against a basket of major
currencies and global stocks tumbled to one-week lows as
declines by long-dated U.S. bond yields and concern about a
trade dispute between the United States and China stoked fear of
a downturn in the United States.             
    The Bank of Canada has worried that the trade dispute is
weighing on global growth and commodity prices.
    Money markets and a strong majority of economists polled by
Reuters expect the central bank to leave its benchmark interest
rate unchanged at 1.75 percent, after it hiked the rate in
October for the fifth time since July 2017.
    The interest rate announcement is due at 10 a.m. (1500 GMT).
    At 9:09 a.m., the Canadian dollar          was trading 0.1
percent lower at 1.3275 to the greenback, or 75.33 U.S. cents.
    The currency, which last week touched a five-month low at
1.3360, traded in a narrow range of 1.3253 to 1.3295.
    The price of oil, one of Canada's major exports, rose, but
concern about the outlook for global growth and evidence of yet
more crude supply kept gains in check. U.S. crude        prices
were up 0.1 percent at $53.32 a barrel.      
    Two major pipelines carrying oil from Canada to the United
States were hit by weather-related disruptions on Tuesday, the
latest hit to Canada's oil industry just days after the Alberta
government announced forced cuts in crude production.
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 2.5 Canadian cents to
yield 2.132 percent and the 10-year             falling 11
Canadian cents to yield 2.184 percent.
    On Tuesday, the 10-year yield hit its lowest intraday in
four-and-a-half months at 2.168 percent.     
    Many U.S. markets were closed on Wednesday to honor former
U.S. President George H.W. Bush, who died last Friday.

 (Reporting by Fergal Smith)
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