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The Canadian dollar edged lower against its U.S. counterpart on Monday, straying close to the nearly four-month low touched last week, as trade tensions between the United States and China continued to weigh on investors’ risk appetite.

Deep divisions on trade between Washington and Beijing were evident at the Asia-Pacific Economic Cooperation summit, with leaders on Sunday failing to agree on a communique for the first time in their history.

U.S. Vice President Mike Pence said in a blunt speech on Saturday that there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways.

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“The Canadian dollar is still very much leveraged to global demand,” said Bipan Rai, North America Head, FX strategy at CIBC Capital Markets.

“If we see hostilities continue to rise between the United States and China, especially after next week’s G20 meeting between President (Donald) Trump and Chairman Xi (Jinping), then that could be something that weighs on global demand and by extension on currencies leveraged to global demand, including the Canadian dollar,” Rai said.

The Canadian dollar also came under pressure on Monday as worries about growing supply of crude weighed on the price of oil.

Traders were also focused on this week’s domestic event calendar, which features public appearances by Carolyn Wilkins, senior deputy governor at the Bank of Canada, and Bank of Canada Deputy Governor Timothy Lane, ahead of CPI and retail sales data due on Friday.

At 3:45 p.m. (2045 GMT), the Canadian dollar was trading down about 0.3 percent against the greenback, at 1.3180 or 75.87 U.S. cents. On Wednesday, the currency hit its weakest level since July 20 at 1.3264.

Canadian government bond yields were lower on the day, with the yield on the 10-year at 2.353 percent.

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