CANADA FX DEBT-C$ edges lower as oil prices fall

    * Canadian dollar at C$1.3338, or 74.97 U.S. cents
    * Bond prices higher across a flatter yield curve

    TORONTO, March 23 (Reuters) - The Canadian dollar dipped
against its U.S. counterpart on Thursday as oil prices fell but
the loonie traded in a narrow range as investors awaited a vote
on a U.S. healthcare replacement later in the day.
     Prices of oil, one of Canada's major exports, hovered above
four-month lows, with a recovery reined in by investor concerns
that Organization of the Petroleum Exporting Countries-led
supply cuts were not yet reducing record U.S. crude inventories.
    U.S. crude        prices were down 0.23 percent at $47.93 a
    The vote on a Republican healthcare plan is seen as a litmus
test of President Donald Trump's ability to negotiate with
Congress and deliver on tax and spending promises.             
    At 9:28 a.m. EDT (1328 GMT), the Canadian dollar          
traded at C$1.3338 to the greenback, or 74.97 U.S. cents,
slightly weaker than Wednesday's close of C$1.3327, or 75.04
U.S. cents.
    The currency traded in a range of C$1.3317 to C$1.3355.
    On Wednesday, Canada's Liberal government unveiled a
stay-the-course budget that targeted export growth and some
measure of tax reform but did little to whittle away at
deficits, even as it backed off from an explicit pledge to
improve the debt outlook.                
    Canadian government bond prices were higher across a flatter
yield curve, with the two-year            up 2 Canadian cents to
yield 0.764 percent and the 10-year             rising 21
Canadian cents to yield 1.657 percent.
    Canada's inflation report for February is due on Friday.

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)