August 24, 2018 / 1:43 PM / a month ago

CANADA FX DEBT-C$ firms ahead of potential clues to central bank rate hikes

    * Canadian dollar at C$1.3058, or 76.58 U.S. cents
    * Price of U.S. oil rises 1.8 percent
    * Bank of Canada's Poloz due to give interview to CNBC
    * Bond prices lower across the yield curve

    TORONTO, Aug 24 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday, recovering from an
earlier one-week low as oil prices rose and investors awaited
potential clues on the outlook for monetary policies in the
United States and Canada.
    The U.S. dollar        fell against a basket of major
currencies ahead of a speech by U.S. Federal Reserve Chairman
Jerome Powell at an economic symposium in Jackson Hole, Wyoming.
Investors hope the talk will provide an indication of the
central bank's plans for monetary tightening and reaction to
recent criticism by U.S. President Donald Trump.                
    Investors could also get clues Friday on prospects for
further interest rate increases from the Bank of Canada. Its
governor, Stephen Poloz, is due to give an interview to CNBC
television at about 4:15 p.m. EDT (2015 GMT).
    The Canadian central bank hiked last month for the fourth
time in a year to leave its benchmark interest rate at 1.50
percent. Money markets expect another hike by October.
          
    The price of oil, one of Canada's major exports, was
supported by signs that U.S. sanctions on Iran are already
reducing global crude supply. U.S. crude        prices were up
1.8 percent at $69.01 a barrel.             
    At 9:18 a.m. EDT (1318 GMT), the Canadian dollar          
traded 0.2 percent higher at C$1.3058 to the greenback, or 76.58
U.S. cents. The currency, which fell 0.6 percent on Thursday,
touched its weakest since Aug. 17 at C$1.3102.    
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 2.5 Canadian cents to yield 2.138 percent and the 10-year
            declined 16 Canadian cents to yield 2.279 percent.

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)
  
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