June 13, 2019 / 2:09 PM / 6 months ago

CANADA FX DEBT-Loonie breaks this week's losing run as oil rallies

    * Canadian dollar rises 0.2% against the greenback
    * Loonie gains for first time since Friday
    * Price of U.S. oil increases 3.3%
    * Canadian bond prices rise across a steeper yield curve

    TORONTO, June 13 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday, after a
three-day run of declines as oil prices rallied and domestic
household indebtedness edged lower.
    At 9:38 a.m. (1338 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3322 to the greenback, or 75.06 U.S.
cents. The currency, which has declined 0.5% this week, traded
in a range of 1.3300 to 1.3342.    
    The price of oil, one of Canada's major exports, rose after
a suspected attack on two tankers in the Gulf of Oman near Iran
and the Strait of Hormuz, through which a fifth of global oil
passes. U.S. crude oil futures        were up 3.3% at $52.84 a
barrel.             
    Canadian household debt as a share of income, a measure
closely watched by policymakers, slipped to 173.0% in the first
quarter from 173.7% in the fourth quarter but is still near
record levels, Statistics Canada.             
    Meanwhile, a survey from Export Development Canada,
completed in March and April, showed that Canadian exporters'
confidence fell to a seven-year low amid the disruption caused
by trade wars and the imposition of U.S. tariffs.             
    The Bank of Canada has repeatedly identified the U.S.-China
trade war as one of the main risks facing the economy.  
    Canadian government bond prices were higher across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 2.5 Canadian cents to yield 1.435% and the
10-year             was up 5 Canadian cents to yield 1.491%.
    On Tuesday, the 10-year yield touched its highest intraday
in 11 days at 1.543%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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