CANADA FX DEBT-Canadian dollar extends weekly decline as retail sales sag

      Canadian dollar weakens 0.3% against the greenback

      Touches its weakest since July 2020 at 1.3551

      Retail sales fall 2.5% in July

      10-year yield slides 8.2 basis points

       TORONTO, Sept 23 (Reuters) - The Canadian dollar
weakened to its lowest level in more than two years against its
U.S. counterpart on Friday as the sell-off in global equity
markets continued and domestic data showed retail sales falling
more than expected in July.
    The loonie        was trading 0.3% lower at 1.3525 to the
greenback, or 73.94 U.S. cents, after touching its weakest since
July 2020 at 1.3551. For the week, the currency was headed for a
decline of 2%.
    Stocks          hit two-year lows and the U.S. dollar       
scaled a two-decade high against a basket of major currencies as
investors feared bigger interest rate rises are on their way to
tame inflation.             
    Canada is a major producer of commodities, including oil, so
the loonie tends to be particularly sensitive to shifts in
investor sentiment.
    U.S. crude        prices were down 4.4% at $79.8 a barrel,
trading at levels not seen since January, on demand fears as
rising interest rates risked tipping major economies into a
    Canadian retail sales fell by 2.5% in July from June on
lower sales at gasoline stations, as well as clothing and
clothing accessories stores, Statistics Canada said. Analysts
had forecast a 2.0% decrease.             
    Preliminary estimates for August were mixed, showing retail
sales up by 0.4% but factory sales falling 1.8%.                
    Canadian government bond yields were lower across a flatter
curve. The 10-year             fell 8.2 basis points to 3.046%,
which left it 7.1 basis further below the equivalent U.S. rate
at a gap of 65.1 basis points. 
 (Reporting by Fergal Smith; editing by Jonathan Oatis)