×

CANADA FX DEBT-C$ recovers from near 9-month low as greenback dips

* Canadian dollar at C$1.3077, or 76.47 U.S. cents

* Loonie touches its weakest since June 28 at C$1.3124

* Bond prices lower across the yield curve

TORONTO, March 19 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Monday, rebounding from an earlier near nine-month low, as the greenback pared its recent broader gains ahead of a Federal Reserve interest rate decision this week. The U.S. dollar dipped against a basket of major currencies after four straight weeks of gains as financial markets looked for the Fed to increase rates on Wednesday for the first time this year. The price of oil, one of Canada's major exports, eased after rallying at the end of last week, but tensions between Saudi Arabia and Iran helped limit losses.

U.S. crude prices were down 0.3 percent at $62.18 a

barrel. At 9:28 a.m. EST (1328 GMT), the Canadian dollar was trading 0.2 percent higher at C$1.3077 to the greenback, or 76.47 U.S. cents. The currency's strongest level of the session was C$1.3046, while it touched its weakest since June 28 at C$1.3124. The loonie fell more than 2 percent last week as comments from Bank of Canada Governor Stephen Poloz reinforced expectations the central bank can take its time raising rates after hiking three times since last July. Bank of Canada Senior Deputy Governor Carolyn Wilkins will deliver a speech on Thursday, while domestic inflation data for February is due on Friday. Canadian government bond prices were lower across the yield

curve, with the two-year down 3 Canadian cents to yield 1.78 percent and the benchmark 10-year falling

28 Canadian cents to yield 2.171 percent. On Friday, the 10-year yield touched its lowest in 10 weeks at 2.128 percent.

(Reporting by Fergal Smith Editing by Susan Thomas)