Market News

(Updates prices, adds market details)
    * Loonie trades in a range of 1.3013 to 1.3078
    * Price of U.S. oil settles nearly 1% lower
    * Canadian 10-year yield rises 10 basis points

    By Fergal Smith
    TORONTO, July 6 (Reuters) - The Canadian dollar was little
changed against the greenback on Wednesday, steadying near a
20-month low it touched the day before, as oil prices fell and
investors digested minutes from the Federal Reserve's latest
policy meeting.
    The loonie        was trading nearly unchanged at 1.3035 to
the greenback, or 76.72 U.S. cents, after touching on Tuesday
its weakest level since November 2020 at 1.3083. It traded on
Wednesday in a range of 1.3013 to 1.3078.
    The Canadian dollar was the only G10 currency not to lose
ground against the U.S. dollar       , with the greenback
climbing to fresh 20-year highs against a basket of major
currencies as concern about the euro zone's economic prospects
pressured the euro       .                     
    The price of oil, one of Canada's major exports, extended
Tuesday's heavy losses as investors grew more worried energy
demand would take a hit in a potential global recession. U.S.
crude futures        settled nearly 1% lower at $98.53 a barrel.
            
    A deteriorating inflation situation and concern about lost
faith in the Fed's power to make it better prompted U.S. central
bank officials to rally around an outsized interest rate
increase, minutes of the June 14-15 policy meeting showed.
            
    The Bank of Canada has also been tightening aggressively.
The central bank is set to raise its overnight rate by a hefty
75 basis points next week and by another 50 in September,
front-loading a campaign to take monetary policy to where it
will restrain the economy, a Reuters poll showed.             
    Canadian government spending is leaving the BoC to work
alone to rein in the highest inflation rate in nearly four
decades, economists say.                 
    Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries. The 10-year
            rose 10 basis points to 3.177% after earlier
touching its lowest since June 3 at 3.026%.

 (Reporting by Fergal Smith
Editing by Bernadette Baum)