* Canadian dollar dips 0.1% against the greenback * Price of U.S. oil declines 2.1% * Canada announces C$1 billion fund to fight coronavirus outbreak * Canadian bond yields fall across a flatter curve TORONTO, March 11 (Reuters) - The Canadian dollar weakened slightly against the greenback on Wednesday as Saudi Arabia intensified its oil price war with Russia, while Prime Minister Justin Trudeau announced fiscal spending to help contain the coronavirus outbreak. At 10:05 a.m. (1405 GMT), the Canadian dollar was trading 0.1% lower at 1.3738 to the greenback, or 72.79 U.S. cents. The currency, which on Tuesday hit a four-year low at 1.3796, traded in a range of 1.3682 to 1.3752. Canada is setting up a C$1 billion fund to help provinces combat a worsening coronavirus outbreak and is prepared to spend more money if necessary, Trudeau said. Last week, the Bank of Canada cut interest rates by 50 basis points to help cushion the economic impact of the virus. Expectations that the central bank will ease by a further 50 basis points in April have climbed in recent days after the price of oil, one of Canada's major exports, crashed. U.S. crude oil futures were down 2.1% at $33.63 a barrel after Saudi Arabia and the United Arab Emirates announced plans to boost production capacity. Meanwhile U.S. stock indexes fell sharply as skepticism grew about the stimulus package announced by Washington to fight the coronavirus epidemic. Canadian government bond yields declined across a flatter yield curve, with the 10-year yield down 14.9 basis points at 0.487%. On Monday, the 10-year yield hit a record intraday low at 0.233%. (Reporting by Fergal Smith; Editing by Steve Orlofsky)
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