April 13, 2020 / 8:27 PM / in 2 months

CANADA FX DEBT-C$ at 4-week high vs U.S. dollar as oil output cut pact helps

    * Canadian dollar           at C$1.387 to the greenback
    * Bond prices little-changed across the maturity curve

 (Updates prices, adds comment)
    By Saqib Iqbal Ahmed
    NEW YORK, April 13 (Reuters) - The Canadian dollar rose to a
four-week high against its U.S. counterpart on Monday, as oil
prices edged higher after a  landmark deal by OPEC and its
allies to cut output.
    The Canadian dollar          was at C$1.387 to the
greenback, or 72.09 U.S. cents, stronger than Friday's close of
C$1.3953, or 71.7 U.S. cents.
    The price of oil, one of Canada's major exports, fluctuated
on Monday as the positive impact of major producers agreeing on
record global output cuts was offset by concerns the reductions
will not be sufficient to reduce a glut as the coronavirus
outbreak hammers demand.
    Brent         futures rose 26 cents, or 0.8%, to settle at
$31.74 a barrel.            
    OPEC and allies led by Russia agreed on Sunday to the output
cut to prop up oil prices amid the COVID-19 pandemic and said
they had an unprecedented deal with fellow oil nations,
including the United States, to curb global oil supply by 20%.
            
    Measures to slow the spread of the coronavirus have
destroyed demand for fuel and driven down oil prices, straining
budgets of oil producers.
    "Oil markets remain on volatile ground given the significant
reduction in demand," said Joe Manimbo, senior market analyst at
Western Union Business Solutions.
    "Canada’s main event risk arrives with a Bank of Canada
decision Wednesday. Central bankers’ assessment of the economy
and their willingness to do more to support growth will be of
critical importance in shaping loonie sentiment," Manimbo said.
    The Bank of Canada is set to release an interest rate
decision on Wednesday.
    Canadian government bond prices were little changed with the
yield on the benchmark 10-year             down about 1 basis
point at 0.748%.

 (Reporting by Saqib Iqbal Ahmed; Editing by Jonathan Oatis and
Peter Cooney)
  
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