April 14, 2020 / 1:40 PM / 2 months ago

CANADA FX DEBT-C$ steadies as easing of some lockdowns bolsters risk appetite

    * Canadian dollar trades near flat against the greenback
    * Loonie trades in a range of 1.3863 to 1.3924
    * Price of U.S. oil decreases 4.3%
    * Canadian bond yields decline across a flatter curve

    TORONTO, April 14 (Reuters) - The Canadian dollar was little
changed against the greenback on Tuesday, holding near a
four-week high it posted the previous day as investors welcomed
signs of easing lockdowns in some countries even as the IMF
slashed its global growth outlook.
     World stocks          gained after Chinese trade data came
in better than expected and as some countries tried to restart
their economies by partly lifting restrictions aimed at
containing the coronavirus pandemic.             
    Canada is a major exporter of commodities, including oil, so
its economy could be hurt particularly hard by global economic
contraction.
    The International Monetary Fund projected that global output
would fall by 3% in 2020, with Canada's economy expected to
shrink by 6.2%.             
    At 9:21 a.m. (1321 GMT), the Canadian dollar        was
trading nearly unchanged at 1.3907 to the greenback, or 71.91
U.S. cents. The currency, which on Monday touched its strongest
level since March 16 at 1.3852, traded in a range of 1.3863 to
1.3924.
    The steady profile for the loonie came ahead of a Bank of
Canada interest rate decision on Wednesday. Last month, the
central bank slashed its benchmark rate by a total of 150 basis
points, in a series of emergency moves, to a level of 0.25%, and
it began a quantitative easing program, buying government bonds
on a large scale.
    U.S. crude oil futures        dropped 4.3% to $21.44 a
barrel, with investors apparently unconvinced that record supply
cuts could soon balance markets pummeled by the coronavirus
pandemic.                 
    Canadian government bond yields fell across a flatter curve,
with the 10-year             down 4.5 basis points at 0.714%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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