* Canadian dollar falls 0.3 percent against the greenback
* Price of U.S. oil falls 1.2 percent
* Loonie touches its weakest since Sept. 6 at 1.3202
* Canadian bond prices rise across a flatter yield curve
TORONTO, Nov 9 (Reuters) – The Canadian dollar weakened to a two-month low against the greenback on Friday as oil prices extended recent declines, and after a court ruling that could delay construction of a major pipeline carrying heavy crude from Canada to the United States. A U.S. judge in Montana late on Thursday halted construction of the Keystone XL pipeline, throwing another obstacle in the path of the project that has been in development for a decade. The price of oil, one of Canada’s major exports, fell to multi-month lows as global supply increased and investors worried about the impact on fuel demand of lower economic growth
and trade disputes. U.S. crude prices were down 1.2
percent at $59.97 a barrel.
At 10:28 a.m. (1528 GMT), the Canadian dollar was
trading 0.3 percent lower at 1.3190 to the greenback, or 75.82 U.S. cents. The currency hit its weakest level since Sept. 6 at 1.3202. Losses for the loonie came as weak Chinese data raised concerns about global growth, pressuring stocks on Wall Street.
Canada runs a current account deficit, so its economy could be hurt if the flow of trade or capital slows. The U.S. dollar rose towards a 16-month high after the U.S. Federal Reserve kept interest rates steady and reaffirmed its monetary tightening stance, cueing up investors for a rate hike in December. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year rose 2.5 Canadian cents to yield 2.343 percent and
the 10-year climbed 21 Canadian cents to yield 2.513
percent.
(Reporting by Fergal Smith Editing by Susan Thomas)