March 30, 2020 / 12:49 PM / 3 months ago

CANADA FX DEBT-Canadian dollar weakens over 1% as oil prices slide

    * Canadian dollar weakens 1.2% against the greenback
    * Price of U.S. oil decreases 6%
    * Loonie trades in a range of 1.4000 to 1.4168
    * Canadian bond yields fall across the curve

    TORONTO, March 30 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as the price of oil fell
and the greenback climbed against a basket of major currencies,
with the loonie giving up some of the previous week's sharp
gains.
    At 8:25 a.m. (1225 GMT), the Canadian dollar          was
trading 1.2% lower at 1.4154 to the greenback, or 70.65 U.S.
cents. The currency, which on Friday touched an 11-day high at
1.3922, traded in a range of 1.4000 and 1.4168.    
    Last week, the loonie rallied 3.1%, its biggest weekly gain
since October 2009.
    U.S. crude oil futures        on Monday were down 6% at
$20.21 a barrel, while the U.S. dollar        snapped a week of
declines as investors braced for prolonged uncertainty and
governments tightened lockdowns to fight the coronavirus.
                        
    Canada will not allow anyone displaying symptoms of the
COVID-19 respiratory illness to board domestic flights or
inter-city passenger trains, Prime Minister Justin Trudeau said
on Saturday, the latest travel restriction aimed at curbing the
coronavirus outbreak.             
    On Friday, Canada said it will cover 75% of wages for small
businesses and the Bank of Canada cut its key interest rate to
0.25%, the lowest level in a decade, as officials sought to
limit layoffs and bolster an economy hard hit by the coronavirus
pandemic.             
    The central bank also launched its first-ever quantitative
easing program, saying it would buy government and commercial
debt. 
    Canadian bond yields fell across the curve, with the 10-year
            down 7.4 basis points at 0.662%.
    Canada's GDP report for January is due on Tuesday.       

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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