CANADA FX DEBT-C$ firms as Canadian government weighs measure to move oil By Reuters


© Reuters. CANADA FX DEBT-C$ firms as Canadian government weighs measure to move oil

* Canadian dollar rises 0.1 percent against the greenback

* Price of U.S. oil falls 0.3 percent

* Canadian bond prices dip across the yield curve

TORONTO, Nov 22 (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Thursday as the greenback broadly fell and Canada’s government weighed a proposal which could help soften the blow from price discounts on heavy crude generated by pipeline congestion.

At 9:57 a.m. (1457 GMT), the Canadian dollar CAD=D4 was 0.1 percent higher at 1.3225 to the greenback, or 75.61 U.S. cents, in holiday impacted trading with U.S. markets shut for Thanksgiving.

The , which touched on Tuesday its weakest in nearly five months at 1.3318, traded in a range of 1.3214 to 1.3245.

Canada’s federal government is considering a proposal from its main oil producing province of Alberta to share the cost of buying rail cars to move oil stuck in the region because of a lack of pipeline capacity, two sources with direct knowledge of the matter said. Canada Select (WCS) oil traded last month as much as $52.50 per barrel below West Texas Intermediate light oil, its biggest differential in data going back to 2010, according to Shorcan Energy Brokers.

Recent weakening in the price of U.S. oil has added to headwinds for Canada’s oil patch. On Thursday, oil prices fell after U.S. crude inventories swelled to their highest level since December, adding to concerns about a global glut but OPEC talk of an output reduction limited losses. crude prices were down 0.3 percent at $54.47 a barrel, while the U.S. dollar fell against a basket of major currencies after Britain and the European Union agreed in principle to a text setting out their future relationship before a summit on Sunday, boosting the euro and sterling. will allow businesses to write off additional capital investments to make them more competitive at a time when the United States is aggressively cutting taxes, Finance Minister Bill Morneau said on Wednesday. government bond prices were lower across the yield curve, with the two-year down 1.5 Canadian cents to yield 2.242 percent and the 10-year falling 8 Canadian cents to yield 2.371 percent.

Canada’s inflation report for October and September retail sales data are due on Friday.

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