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Canadian dollar hits a one-week low as stocks slide

Credit: REUTERS/THOMAS WHITE

The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as global stocks and oil prices fell, while domestic data showed payroll jobs declined for the sixth straight month.

* Canadian dollar falls 0.3% against the greenback

* Canada sheds 205,400 nonfarm payroll jobs in August

* Price of U.S. oil drops 0.9%

* Canadian bond yields ease across a flatter curve

TORONTO, Sept 17 (Reuters) - The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as global stocks and oil prices fell, while domestic data showed payroll jobs declined for the sixth straight month.

The loonie was trading 0.3% lower at 1.3222 to the greenback, or 75.63 U.S. cents. The currency touched its weakest intraday level since Sept. 9 at 1.3247.

U.S. crude prices were down 0.9% at $39.81 a barrel as production started in the Gulf of Mexico after Hurricane Sally. Oil is one of Canada's major exports.

Equities recoiled after a divided U.S. Federal Reserve dented stimulus hopes and U.S. data continued to show high levels of weekly jobless claims.

Canada lost 205,400 nonfarm payroll jobs in August, the sixth straight month of decline, a report from payroll services provider ADP showed. The report is derived from ADP's payrolls data.

The ADP data paints a bleaker picture than government labour market data.

Earlier this month, Statistics Canada's labour force survey showed that jobs climbed for the fourth consecutive month though the pace of gains slowed, bringing employment within about a million jobs of pre-pandemic levels.

Canada's retail sales report for July is due on Friday.

Canadian government bond yields were lower across a flatter curve in sympathy with U.S. Treasuries. The 10-year was down 3.3 basis points at 0.541%.

Strategists say that setting a target for bond yields could help the Bank of Canada reduce the amount of debt it buys to keep interest rates low, checking a threat to market liquidity after the central bank's share of bonds more than doubled this year. (Reporting by Fergal Smith; Editing by Andrea Ricci) ((fergal.smith@thomsonreuters.com; +1 416 941 8113;)) Keywords: CANADA FOREX/

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