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CANADA FX DEBT-Canadian dollar pares its weekly advance as oil slides

    * Canadian dollar falls 0.2% against the greenback
    * Loonie is on track to rise 0.4% for the week
    * Canadian retail sales jump 23.7% in June
    * Canada's 10-year yield hits a 10-day low at 0.540%

    TORONTO, Aug 21 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as oil prices fell and
domestic data showed a jump in retail sales that was about in
line with expectations, but the loonie stayed on track for its
third straight weekly advance.
    Canadian retail sales grew by 23.7% in June from May on
higher sales at motor vehicle and parts dealers and clothing
retailers, Statistics Canada said. But a flash estimate
suggested some loss of momentum in July, with sales estimated to
rise 0.7%.
    Stocks globally          fell for a third straight day as
European purchasing managers' index releases painted a muted
economic outlook, while U.S. crude oil futures        were down
nearly 2% at $41.97 a barrel. Oil is one of Canada's major
exports.
    The Canadian dollar        was trading 0.2% lower at 1.3214
to the greenback, or 75.68 U.S. cents. The currency, which on
Wednesday posted its strongest intraday level in nearly seven
months at 1.3131, traded in a range of 1.3159 to 1.3227.
    For the week, the loonie was up 0.4%.
    Canada is extending an emergency COVID-19 income-support
program by four weeks to the end of September, and beginning on
Sept. 27 it will offer unemployment benefits to hundreds of
thousands of people who would not normally qualify, a senior
official said on Thursday.             
    The total cost of the new measures is estimated at about
C$37 billion over the next year. The budget deficit this fiscal
year is forecast to hit C$343.2 billion, which would be the
largest shortfall since World War Two.
    Canadian government bond yields were lower across much of a
flatter curve in sympathy with U.S. Treasuries on Friday. The
10-year yield             fell 2.2 basis points to 0.540%, its
lowest since Aug. 11.

 (Reporting by Fergal Smith; Editing by Kirsten Donovan)
  
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