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* Canadian dollar settles at C$1.3381, or 74.73 U.S. cents
* Bond prices higher across flatter maturity curve
By Alastair Sharp
TORONTO, April 18 The Canadian dollar fell to a
more than one-week low against a broadly weaker U.S. counterpart
on Tuesday as oil prices slipped and bond yields fell.
The loonie, as the Canadian currency is colloquially known,
also lost ground versus a string of other currencies as oil, a
major Canadian export, hit an 11-day low and a snap British
election added to geopolitical jitters from North Korea to
"We've seen the Canadian dollar get slaughtered today," said
Rahim Madhavji, president of KnightsbridgeFX.com, attributing
some of the sharp move to a more somber reassessment of how
quickly the Bank of Canada might move to raise rates.
"It's a surprising move, larger than what most people would
expect, but it's really just correcting itself to where we were
two weeks ago," he said.
The Canadian dollar settled at C$1.3381 to the
greenback, or 74.73 U.S. cents, weaker than the Bank of Canada's
official close on Monday of C$1.3316, or 75.09 U.S. cents.
That weakness came even as the greenback hit a nearly
three-week low against a basket of major currencies.
The loonie fell sharply against the British pound, which was
at its strongest levels in months after British Prime Minister
Theresa May surprised markets by calling an early election for
June 8, and was also much weaker against the euro, Swiss franc
and Japanese yen.
In a speech that did not discuss monetary policy, a senior
Bank of Canada official said new technologies could help boost
Canada's flagging productivity and income growth, but could also
widen income inequality as some workers benefit from automation
and others are hurt by it.
French voters will go to the polls on Sunday in a first
round that appears to be a tight four-way race led by a centrist
and a far-right candidate.
Investors are also nervous about tensions over North Korea,
which failed to launch a ballistic missile over the weekend.
Canadian government bond prices were higher across a flatter
maturity curve, with the two-year price up half a
Canadian cent to yield 0.729 percent and the benchmark 10-year
rising 69 Canadian cents to yield 1.478 percent.
That was the 10-year's lowest yield since November.
Oil prices fell, as bearish positions were fueled by a U.S.
government report which said shale oil output in May was
expected to post the biggest monthly increase in more than two
(Reporting by Alastair Sharp; Editing by Nick Zieminski and