CANADA FX DEBT-C$ weakens to a 4-day low as the greenback rallies

    * Canadian dollar fell 0.5% against the greenback 
    * U.S. crude oil prices increase by more than 2%
    * Canadian bond prices move lower across the yield curve

    By Levent Uslu
    TORONTO, Aug 19 (Reuters) - The Canadian dollar weakened to
a four-day low against its U.S. counterpart on Monday, despite
increasing oil prices, as the greenback rallied broadly on
rising global risk appetite.
    The U.S. dollar        strengthened against a basket of
currencies as risk sentiment gradually improved after a week of
turmoil on hopes that major central banks would look to launch
fresh stimulus measures to lift their sluggish economies.
    "The U.S. dollar is up across the board today so this seems
to be just a broad based dollar rally that's weakened the
Canadian dollar," said Blake Jespersen, managing director of 
foreign exchange sales at BMO Capital Markets.
    At 3:06 p.m. (1906 GMT), the Canadian dollar          was
trading 0.5% lower at 1.3325 to the greenback, or 75.05 U.S.
cents. The currency touched its weakest intraday level since
last Thursday at 1.3332.
     Meanwhile, the price of oil, one of Canada's major exports,
was up after a weekend attack on a Saudi oil facility by Yemen's
Houthi forces and as traders looked for signs that top economies
would take measures to counteract a global slowdown. U.S. crude
oil futures        settled 2.4% higher at $56.21 a barrel.  
    Canada's manufacturing sales data for June is due on
Tuesday, with a Reuters poll forecasting a 1.7% decrease, which
could help guide expectations about the Bank of Canada's
interest rate decision.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 4.5 Canadian cents to yield 1.359% and the 10-year
            was down 14 Canadian cents to yield 1.178%.
    On Thursday, the 10-year yield touched its lowest level
since October 2016 at 1.083%.

 (Reporting by Levent Uslu
Editing by Nick Zieminski)