Off The Wire
CANADA FX DEBT-C$ nearly flat against weaker greenback as oil dips
* Bond prices fall across the yield curve
TORONTO, Jan 12 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday as the greenback broadly fell and the price of oil pared some recent gains, while investors awaited an interest rate decision from the Bank of Canada next week.
The price of oil, one of Canada's major exports, fell after hitting a three-year high of more than $70 a barrel on Thursday. U.S. crude prices were down 0.4 percent at $63.56 a barrel.
The U.S. dollar fell against a basket of major currencies but made a partial recovery after the Labor Department said its consumer price index, excluding the volatile food and energy components, rose 0.3 percent last month, the biggest advance since January 2017. At 9:43 a.m. EST (1443 GMT), the Canadian dollar was up 0.1 percent at C$1.2511 to the greenback, or 79.93 U.S. cents. The currency traded in a range of C$1.2499 to C$1.2556.
One week ago, the loonie touched its strongest in three months at C$1.2355 after much-stronger-than expected jobs data boosted expectations for a Bank of Canada interest rate hike on Jan. 17.
But the currency was rattled this week after Canadian government sources told Reuters they were increasingly convinced that the United States planned to announce plans to pull out of the North American Free Trade Agreement.
Canada, which sends about 75 percent of its exports to the United States, welcomes U.S. President Donald Trump's suggestion that the deadline for concluding talks to modernize NAFTA could be extended beyond the end of March, Foreign Minister Chrystia Freeland told reporters. Chances of a rate hike next week had been dented by worries about NAFTA but have since recovered to about 90 percent, data from the overnight index swaps market showed. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year fell 5 Canadian cents to yield 1.782 percent, and the 10-year declined 30 Canadian cents to yield 2.204 percent.
On Wednesday, the 10-year yield reached 2.231 percent, its highest intraday since September 2014.
(Reporting by Fergal Smith; Editing by Lisa Von Ahn)