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Canadian dollar falls 0.4% against the greenback

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Touches its weakest since November at 1.3889

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Manufacturing PMI drops to 7-month low

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2-year yield hits a 17-month low

(Updates market pricing)

By Fergal Smith

TORONTO, Aug 1 (Reuters) - The Canadian dollar weakened

to a nine-month low against its broadly stronger U.S.

counterpart on Thursday as geopolitical tensions and weak

manufacturing data globally weighed on investor sentiment.

The loonie was trading 0.4% lower at 1.3870 to the

U.S. dollar, or 72.10 U.S. cents, after touching its weakest

intraday level since November at 1.3889.

"The moves in USD-CAD today are coming from the broad USD

strength, with the general risk-off tone in markets exacerbated

by the headlines in the Middle East and U.S. data downside

misses," said Jayati Bharadwaj, a global FX strategist at TD

Securities.

The U.S. dollar rose against a basket of major

currencies as rising geopolitical tensions provided a safe-haven

boost to the currency, and Wall Street's major indexes tumbled.

Manufacturers across the United States, Europe and Asia

turned in a weak performance last month as factories grappled

with tepid demand, surveys showed, raising the risk of an

underpowered global economic recovery.

Canadian factory data was also downbeat. The S&P Global

Canada Manufacturing Purchasing Managers' Index (PMI) fell to

47.8 in July from 49.3 in June, posting its lowest level since

December.

Canada is a major producer of commodities, including oil, so

the loonie tends to be sensitive to the outlook for the global

economy.

The price of oil settled 2.1% lower at $76.31 a

barrel as global supply seemed largely unaffected by worries of

a wider Middle East crisis.

Canadian bond yields fell across a steeper curve, tracking a

sharp decline in U.S. Treasury yields. The 2-year was

down 9.2 basis points at 3.360%, after earlier touching its

lowest level since March 2023 at 3.354%.