(Adds quotes and strategist details throughout; updates pricing) * The Canadian dollar weakens 1% against the greenback * Hits its weakest level since last Monday at 1.2934 * The U.S. oil prices fall 2.9% * Canadian bond yields ease across the curve By Fergal Smith TORONTO, Aug 15 (Reuters) – The Canadian dollar on Monday posted its biggest drop in more than a month against to the greenback as investors rushed to the U.S. safe-haven currency after a period of weakness and ahead of a key domestic inflation report this week. . The loonie was trading down 1% at 1.29 against the greenback, or 77.52 US cents, its biggest decline since July 14. The currency hit its lowest level since last Monday at 1.2934. “What we’re seeing is broad-based strength in the US dollar after about a month of weakness,” said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. The greenback rebounded after a batch of disappointing Chinese data heightened global recession concerns. Commodity-linked currencies were particularly hard hit, with the Australian and New Zealand dollars falling around 1.4%. Canada is a major producer of raw materials, including oil. U.S. crude oil futures fell 2.9% to $89.41 a barrel on renewed concerns over reduced fuel demand. In national data, the average resale home price fell 4.5% from a year ago in July as buyers continued to stay away amid rising borrowing costs, according to data from the Canadian Real Estate Association. The Bank of Canada is expected to raise interest rates further next month despite data due Tuesday that is expected to show Canada’s annual inflation rate falling in July from a multi-decade high of 8.1% in June. “I think central banks are going to tighten against thick and thin,” Chandler said. “They are more concerned about inflation than recession.” Yields on Canadian government bonds declined across the curve, following the performance of US Treasuries. The 10-year fell 4.6 basis points to 2.692%. (Reporting by Fergal Smith; Editing by David Holmes and Sandra Maler)
CANADA-$CAD FX DEBT falls the most in a month as the greenback rallies
