April 16, 2020 / 1:34 PM / 4 months ago

CANADA FX DEBT-Canadian dollar regains some ground as oil prices rise

    * Canadian dollar rises 0.2% against the greenback
    * Canada sheds 177,300 payroll jobs in March
    * Price of U.S. oil increases 1.9%
    * Canada's 10-year yield falls to a 2-week low at 0.592%

    TORONTO, April 16 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday as oil
prices rose, with the loonie paring some of the previous day's
decline when the Bank of Canada added to measures to cushion the
economic impact of the new coronavirus outbreak.
    At 9:13 a.m. (1313 GMT), the Canadian dollar          was
trading 0.2% higher at 1.4078 to the greenback, or 71.03 U.S.
cents. Earlier in the session, the currency touched its weakest
intraday level since April 7 at 1.4135.    
    The price of oil, one of Canada's major exports, rose after
sharp losses in the previous session, with investors hoping that
a big build-up of U.S. inventories may mean producers have
little option but to deepen output cuts as the coronavirus
pandemic ravages demand. U.S. crude        prices were up 1.9%
at $20.24 a barrel.
    Canada lost 177,300 jobs in March, including sharp declines
in trade, transportation and utilities as well as leisure and
hospitality, as the coronavirus pandemic ripped through the
economy, a report from payroll services provider ADP showed.
    Separate data from Statistics Canada showed that factory
sales increased by 0.5% in February from January on higher sales
in motor vehicle assembly, as well as plastics and rubber
products.                  
    On Wednesday, the Bank of Canada kept interest rates steady
at 0.25% as expected and added provincial and corporate bonds to
its asset-purchase, or quantitative easing, program.
            
    Since the start of March, the BoC has slashed interest rates
by a total of 150 basis points, in a series of emergency moves,
and begun buying at least C$5 billion of government bonds per
week.
    Canadian government bond yields were lower across a flatter
curve on Thursday. The 10-year             fell 5 basis points
to 0.592%, its lowest since April 2.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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