September 20, 2018 / 1:39 PM / in 3 months

CANADA FX DEBT-C$ strengthens to 3-week high as greenback broadly slides

    * Canadian dollar rises 0.2 percent against the greenback
    * Loonie touches its strongest since Aug. 28 at C$1.2890
    * Price of U.S. oil rises 0.6 percent
    * 10-year yield nears a four-month high at 2.443 percent

    TORONTO, Sept 20 (Reuters) - The Canadian dollar
strengthened to its highest in more than three weeks against its
U.S. counterpart on Thursday as the greenback broadly fell and
investors awaited clues on the prospect of a deal to revamp the
NAFTA trade pact.
    At 9:22 a.m. (1322 GMT), the Canadian dollar          was
trading 0.2 percent higher at C$1.2894 to the greenback, or
77.56 U.S. cents. The currency touched its strongest since Aug.
28 at C$1.2890.   
     Canadian Prime Minister Justin Trudeau said on Wednesday he
wanted to see flexibility from the United States if the two
sides are to reach a deal on renewing the North American Free
Trade Agreement, which Washington insists must be finished by
the end of the month.                 
    The U.S. dollar        fell to a nine-week low against a
basket of major currencies as investors shifted their focus from
a trade row between China and the United States to the Federal
Reserve's monetary tightening plans.             
    A bounce in world stocks on relief that fresh U.S. and
Chinese tariffs on reciprocal imports were less harsh than
feared continued, although investors remained wary about the
next steps in the US-Sino trade war.             
    Canada runs a current account deficit and exports many
commodities, so its economy could be hurt if the global flow of
trade or capital slows.
    The price of oil, one of Canada's major exports, added to
recent gains even after U.S. President Donald Trump called on
OPEC to "get prices down now!" ahead of a meeting of major oil
exporters in Algeria this weekend.             
    U.S. crude        prices were up 0.6 percent at $71.54 a
barrel.
    Canada added 13,600 jobs in August, driven by hiring in the
finance, construction and manufacturing industries, according to
a report from ADP.             
    Canada's inflation report for August and July retail sales
data are due on Friday.
    Canadian government bond prices were lower across a steeper
yield curve, with the 10-year             falling 12 Canadian
cents to yield 2.436 percent. The 10-year yield touched its
highest intraday since May 24 at 2.443 percent.       

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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