CANADA FX DEBT-C$ hits 2-week low as potential travel ban extension weighs

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar dips 0.1% against the greenback
    * Loonie touches its weakest since June 30 at 1.3646 
    * Price of U.S. oil rises 0.5%
    * Canadian bond yields mixed across a flatter curve

    By Fergal Smith
    TORONTO, July 14 (Reuters) - The Canadian dollar weakened to
a two-week low against its U.S. counterpart on Tuesday as the
prospect of travel restrictions between Canada and the United
States being extended threatened to heap additional pressure on
Canada's economy.
    Canada and the United States are set to extend a ban on
non-essential travel that was imposed to fight the coronavirus
outbreak, although a final decision has not been taken, two
Ottawa sources familiar with the matter said on Monday.
            
    That would be "a further drag" on the Canadian economy, said
Scott Lampard, head of global markets at HSBC Bank Canada.
    The ban does not stop the movement of goods but affects
tourism and other services.
    "I think there is just the prospect that the government is
going to need to support the economy for longer," Lampard said.
    Ottawa is rolling out more than C$212 billion in direct
support measures for Canada's economy, while the Bank of Canada
has slashed interest rates since March to a record low of 0.25%.
            
    The central bank is expected to leave rates on hold at a
policy announcement on Wednesday, with investors likely to focus
on the bank's outlook for the economy and potential guidance on
its bond-buying program.             
    The Canadian dollar        was trading 0.1% lower at 1.3619
to the greenback, or 73.43 U.S. cents. The currency touched its
weakest intraday level since June 30 at 1.3646.
    The decline for the loonie came despite a higher price for
oil, one of Canada's major exports. U.S. crude oil futures
       settled up 0.5% at $40.29 a barrel as OPEC and its allies
cut production by more than agreed to in June, while Wall Street
rose as investors looked beyond a recent surge in coronavirus
cases.             
    Canadian government bond yields were mixed across a flatter
curve, with the 30-year             easing 1.4 basis points to
1.0470%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum and
Peter Cooney)
  

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