June 10, 2020 / 1:36 PM / a month ago

CANADA FX DEBT-Canadian dollar rises ahead of potential further Fed easing steps

    * Canadian dollar rises 0.2% against the greenback
    * Price of U.S. oil decreases 1.3%
    * Canadian bond yields fall across the curve

    TORONTO, June 10 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Wednesday ahead of
a Federal Reserve interest rate announcement, as investors
weighed the prospect of additional easing measures from the U.S.
central bank.
    Global stocks          rose, while the U.S. dollar       
dropped to a three-month low against a basket of major
currencies amid speculation the Fed will announce it intends to
keep a recent rise in bond yields in check.             
    The loonie        was trading 0.2% higher at 1.3391 to the
greenback, or 74.68 U.S. cents. The currency, which on Monday
notched a three-month high at 1.3352, traded in a range of
1.3370 to 1.3428.        
    Canada and the United States are set to extend a ban on
non-essential travel to late July as both countries seek to
control the spread of the coronavirus, according to three
sources familiar with the matter. The ban, currently due to
expire on June 21, does not affect trade.             
    About 75% of Canada's exports go to the United States,
including oil. U.S. crude oil futures        fell 1.3% to $38.42
a barrel after a report showed a rise in crude inventories in
the United States, reviving concerns about oversupply and weak
demand because of the coronavirus crisis.             
    Canadian government bond yields were lower across the curve
in sympathy with U.S. Treasuries, with the 10-year            
down 1.9 basis points at 0.615%. 

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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