June 11, 2020 / 1:23 PM / a month ago

CANADA FX DEBT-Canadian dollar slides as investor risk appetite wanes

    * Canadian dollar falls 0.6% against the greenback
    * Price of U.S. oil decreases 6.6%
    * Loonie trades in a range of 1.3398 to 1.3509
    * Canadian bond yields fall across a flatter curve

    TORONTO, June 11 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as investors
re-evaluated prospects of the global economy recovering quickly
from the coronavirus crisis. 
    World shares          took their biggest tumble in five
weeks as a sobering economic outlook from the U.S. Federal
Reserve challenged market expectations and new coronavirus
infections in the United States showed a slight increase after
five weeks of declines.             
    The price of oil, one of Canada's major exports, was also
pressured by the Fed's gloomy projections as well as another
record buildup in U.S. crude inventories. U.S. crude       
prices were down 6.6% at $36.97 a barrel.             
    The Canadian dollar        was trading 0.6% lower at 1.3496
to the greenback, or 74.10 U.S. cents. The currency, which on
Wednesday notched its strongest intraday level in more than
three months at 1.3311, traded in a range of 1.3398 to 1.3509.
    Canada's political consensus over help for those hit by the
coronavirus outbreak began to fray on Wednesday when opposition
legislators blocked a government move to approve a proposed
expansion of benefits.             
    Ottawa is rolling out more than C$150 billion in direct aid
for the economy, while the Bank of Canada has slashed interest
rates to near zero and has begun a large-scale bond buying
program for the first time.
    Canadian government bond yields were lower across a flatter
curve, with the 10-year             down 4.5 basis points at
    Canadian capacity utilization data for the first quarter is
due on Friday.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
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