(Adds strategist quotes and details throughout; updates prices) * Canadian dollar falls 0.1% against the greenback * Loonie hits its weakest since June 2019 at 1.3465 * Price of U.S. oil tumbles nearly 5% * Canada's 2-year yield falls to its lowest since July 2017 By Fergal Smith TORONTO, Feb 28 (Reuters) - The Canadian dollar weakened to a nine-month low against the greenback on Friday as concerns rose about the impact of the coronavirus outbreak on Canada's commodity-linked economy and data showed barely any growth in the fourth quarter. At 3:39 p.m. (2039 GMT), the Canadian dollar was trading 0.1% lower at 1.3408 to the greenback, or 74.58 U.S. cents. The currency touched its weakest intraday level since June, last year at 1.3465. For the week, the loonie fell 1.4%, its biggest weekly decline in more than a year, while it was down 1.3% for the month. "The bears have come out of hibernation and are rampaging through the currency markets at the moment and certainly taking a negative view on the outlook for the Canadian economy," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Canada runs a current account deficit and is a major exporter of commodities, including oil, so its economy could be hurt by a slowdown in the global flow of trade or capital. The coronavirus panic sent world stock markets and the price of oil tumbling. U.S. crude oil futures settled nearly 5% lower at $44.76 a barrel. Canada's economic growth slowed to an annualized rate of 0.3% in the fourth quarter, the worst performance in almost four years, due in part to strikes, bad weather and shutdowns, Statistics Canada said. The number matched both the forecast of analysts in a Reuters poll as well as the Bank of Canada's prediction. Chances of a Bank of Canada interest rate cut next Wednesday have climbed to about 65% from less than 20% one week ago, data from the overnight index swaps market showed. Speculators have raised their bullish bets on the Canadian dollar for the first time in five weeks, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed. As of Feb. 25, net long positions had increased to 14,624 contracts from 7,817 in the prior week. Canadian government bond yields fell across a steeper yield curve in sympathy with U.S. Treasuries. The two-year yield declined 9.6 basis points to 1.152%, its lowest since July 2017. The gap between Canada's two-year yield and its U.S. equivalent widened by 13.7 basis points to a spread of 28.2 basis points in favor of the Canadian bond, its biggest gap since January 2015. (Reporting by Fergal Smith; Editing by David Gregorio)
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