CANADA FX DEBT-Canadian dollar clings to weekly gain as China injects liquidity

       * Canadian dollar rises 0.1% against the greenback
    * Loonie trades in a range of 1.2637 to 1.2690
    * Price of U.S. oil falls 1.2%; copper gains 1.5%
    * Canadian 10-year yield touched its highest since Aug. 11

    TORONTO, Sept 17 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Friday as the central
bank of top commodity consumer China moved to calm markets,
while Canada's 10-year yield climbed to a five-week high.
    Copper prices        rose after the People's Bank of China
infused liquidity to ease nerves caused by property giant China
Evergrande Group's           debt woes.
    Canada is a major exporter of commodities, including copper
and oil. Copper        rallied 1.5%, while oil        gave back
some of this week's gains, falling 1.2% to $71.74 a barrel.

    The Canadian dollar        was trading 0.1% higher at 1.2670
to the greenback, or 78.93 U.S. cents, after trading in a range
of 1.2637 to 1.2690. For the week, the loonie was on track to
advance 0.1%.
    Investors are awaiting a Federal Reserve interest rate
decision next week and a Canadian federal election.
    Foreign investors are growing more worried that Canada's
election on Monday could result in a deadlock that hampers
Ottawa's response to the COVID-19 pandemic and further slows the
economic recovery from the crisis.
    On Thursday, Fitch Ratings cut its 2021 growth forecast for
the Canadian economy to 5% from 6.6%.
    Fitch last year stripped Canada of one of its coveted
triple-A credit ratings, but S&P Global Ratings and Moody's
Investors Service still give Canadian debt the highest rating.
    Canadian government bond yields were higher across a steeper
curve, tracking the move in U.S. Treasuries.
    The 10-year             touched its highest level since Aug.
11 at 1.289% before dipping slightly to 1.282%, up 4.6 basis
points on the day.

 (Reporting by Fergal Smith. Editing by Jane Merriman)

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