CANADA FX DEBT-Canadian dollar hits near four-week low as US CPI data boosts greenback

By Fergal Smith

TORONTO, Nov 10 (Reuters) - The Canadian dollar weakened to a near four-week low against its US counterpart on Tuesday, as the greenback posted broad-based gains and investors weighed minutes from the Bank of Canada's most recent policy decision.

The loonie was trading 0.5% lower at 1.4185 per US dollar, or 70.50 US cents, after touching its weakest intraday level since October 15 at 1.4210.

• Ahead of the Bank of Canada's October 28 interest rate hike, governors agreed that uncertainty over the future path of rates did not mean the bank would do nothing, minutes showed.

• "The Bank had clearly tilted hawkish in the run-up to its October rate hike," said Shelly Kaushik, a senior economist at BMO Capital Markets. "The data and developments since then, particularly on energy prices, suggest there's no hurry to follow up with another move in December."

• The price of oil, one of Canada's major exports, fell to a two-month low after US officials downplayed the need for additional military action against Iran, easing fears of additional Middle East supply disruptions. US crude futures were trading nearly 1% lower at $86.02 a barrel.

• The US dollar strengthened against a basket of major currencies after hotter-than-expected US inflation data bolstered expectations that the Federal Reserve would raise borrowing costs next month.

• Investors have fully discounted a Fed hike in December, while chances of a BoC move next month are seen at less than 50%, swap market data showed.

• Canadian government bond yields moved higher across a flatter curve, tracking moves in US Treasuries.

• The 2-year was up 9.4 basis points at 3.251%. Still, it fell 10.1 basis points further below the equivalent US rate to a gap of about 149 basis points, its widest since October 21.