* Canadian dollar at C$1.3459, or 74.30 U.S. cents
* Bond prices lower across the yield curve
TORONTO, Nov 29 The Canadian dollar weakened
against its U.S. counterpart on Tuesday as oil tumbled on doubts
that leading exporters will agree a deal to cut crude output and
the greenback gained against a basket of major currencies.
The Organization of the Petroleum Exporting Countries were
set to meet in Vienna on Wednesday, aiming to implement a deal
outlined in September to cut output. But key OPEC members
appeared to disagree over details of the plan.
U.S. crude prices were down 3.80 percent at $45.29 a
barrel. Oil is one of Canada's major exports.
Gains for the U.S. dollar came as data showed the
U.S. economy grew faster than initially thought in the third
In domestic data, Canada's current account deficit narrowed
to C$18.3 billion in the third quarter from a revised C$19.02
billion in the second quarter as exports picked up, Statistics
At 9:24 a.m. EST (1424 GMT), the Canadian dollar
was trading at C$1.3459 to the greenback, or 74.30 U.S. cents,
weaker than Monday's close of C$1.3421, or 74.51 U.S. cents.
The currency's strongest level of the session was C$1.3401,
while its weakest was C$1.3481.
Many of the uncertainties surrounding the economic outlook
that the Bank of Canada faced at its last policy decision still
remain, Governor Stephen Poloz said on Monday.
The central bank considered an interest rate cut last month
before holding its policy rate steady at 0.50 percent. It last
cut rates in July 2015.
The market is too complacent about the prospect of further
interest rate cuts from the Bank of Canada, some economists
said, as an uncertain outlook for the NAFTA trade accord risks
derailing an expected pick-up in Canada's business spending.
Speculators cut bearish bets on the Canadian dollar for the
second straight week, according to Commodity Futures Trading
Commission data on Monday. Net short Canadian dollar positions
fell to 17,462 contracts in the week ended Nov. 22 from 18,599
the prior week.
Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year
bond fell 3 Canadian cents to yield 0.676 percent and the
benchmark 10-year declined 18 Canadian cents to
yield 1.545 percent.
Last week, the 10-year yield touched an 11-month high at
1.614 percent as investors bet that the policies of U.S.
President-elect Donald Trump will lead to higher inflation.
Canada's gross domestic product data for the third quarter
is due on Wednesday.
(Reporting by Fergal Smith; Editing by Meredith Mazzilli)