August 16, 2019 / 3:17 PM / a year ago

CANADA FX DEBT-C$ pares this week's decline as risk appetite rises

    * Canadian dollar trades 0.1% higher against the greenback
    * For the week, the loonie down 0.6%
    * U.S. oil prices increase 0.6%
    * Bond prices move lower across the maturity curve

    TORONTO, Aug 16 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Friday, with the currency
rebounding from an eight-day low it hit the previous session as
investor appetite for risk improved.    
    Hopes of Chinese economic stimulus and rate cuts from some
major central banks helped drive a broad rise in U.S. stocks, as
a bruising week for markets drew to a close.             
    Canada exports many commodities, including oil, so a better
outlook for global economic growth could boost its economy.
    At 9:54 a.m. (1354 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3303 to the greenback, or 75.17 U.S.
    The currency, which on Thursday touched its weakest intraday
level since Aug. 7 at 1.3339, was on track to fall 0.6% for the
    Friday's gain for the loonie came as the price of oil rose,
ending a two-day losing streak. U.S. crude oil futures       
were up 0.6% at $54.81 a barrel.              
    Meanwhile, foreign investors sold a net C$3.98 billion in
Canadian securities in June, led by federal bonds, following a
revised C$10.28 billion total purchase in May, domestic data
showed. It was the third divestment in four months. 
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 3 Canadian cents to yield 1.325% and the 10-year
            was down 23 Canadian cents to yield 1.127%.
    On Thursday, the 10-year yield touched its lowest intraday
level since October 2016 at 1.083%. 

 (Reporting by Levent Uslu
Editing by Nick Zieminski)
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