(Adds analyst quote and details on Fed decision and updates
* Canadian dollar at C$1.3252, or 75.46 U.S. cents
* Loonie touches its strongest since Oct. 19 at C$1.3081
* Bond prices lower across a flatter yield curve
By Fergal Smith
TORONTO, Dec 14 The Canadian dollar tumbled from
an eight-week high against its U.S. counterpart on Wednesday,
pressured by lower oil prices and broader gains for the
greenback after the Federal Reserve raised U.S. interest rates
for the first time in a year.
The U.S. central bank raised rates by a quarter percentage
point and signaled a faster pace of increases in 2017 as the
Trump administration takes over with promises to boost growth
through tax cuts, spending and deregulation.
"The Fed was a little bit more hawkish than expected in the
(policy path chart) and that is why we have seen the U.S. dollar
higher pretty much across the board," said Greg Anderson, global
head of foreign exchange strategy at BMO Capital Markets.
Prices of oil, one of Canada's major exports, fell as the
U.S. dollar jumped after the Fed decision and after a jump in
crude inventories at the biggest U.S. storage center renewed
concerns about a glut.
U.S. crude prices were down 4.02 percent at $50.85 a
At 3:15 p.m. EST (2015 GMT), the Canadian dollar
was trading at C$1.3252 to the greenback, or 75.46 U.S. cents,
much weaker than Tuesday's close of C$1.3133, or 76.14 U.S.
The currency's weakest level was C$1.3257, while it touched
its strongest since Oct. 19 at C$1.3081.
The loonie had gained steadily in recent weeks on the back
of higher prices for oil after major producers agreed to cut
Canadian home prices rose in November from a month earlier
as prices continued to soar in Toronto, the biggest market,
helping to drive household debt to another record, separate
reports showed on Wednesday.
Canadian government bond prices were lower across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
fell 5.5 Canadian cents to yield 0.807 percent and
the benchmark 10-year declined 13 Canadian cents to
yield 1.771 percent.
On Tuesday, the 10-year yield touched its highest since June
2015 at 1.794 percent.
(Reporting by Fergal Smith; Editing by Meredith Mazzilli and