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Canadian dollar falls 0.1% against the greenback

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Trades in a range of 1.3956 to 1.3991

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Manufacturing PMI falls to 48.4 in November

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Bond yields rise across the curve

By Fergal Smith

TORONTO, Dec 1 (Reuters) - The Canadian dollar edged

lower against its U.S. counterpart on Monday, giving back some

recent gains, as domestic data showed the manufacturing sector

contracted at a steeper pace in November.

The loonie was trading 0.1% lower at 1.3980 per U.S.

dollar, or 71.53 U.S. cents, after moving in a range of 1.3956

to 1.3991.

On Friday, the currency touched its strongest intraday level

in four weeks at 1.3935 as Canadian third-quarter GDP growth

surpassed forecasts.

"The CAD is retaining a good deal of the advance seen last

week around the stronger than expected GDP report," Shaun

Osborne and Eric Theoret, strategists at Scotiabank, said in a

note.

"The data will reinforce the outlook for steady BoC policy

for the foreseeable future and bolster the narrowing trend in

short-term U.S./Canada yield spreads."

Investors see a roughly 90% chance the Bank of Canada will

leave its benchmark interest rate on hold at a three-year low of

2.25% next week.

Data on Monday was less upbeat. The S&P Global Canada

Manufacturing Purchasing Managers' Index fell to 48.4 last month

from 49.6 in October as trade uncertainty continued to hold back

output and new orders. It marked the 10th straight month the

index was below the 50.0 no-change mark.

The price of oil, one of Canada's major exports, was

trading 1.2% higher at $59.26 a barrel following OPEC's decision

to leave output levels unchanged in the first quarter of 2026.

Canadian government bond yields moved higher across the

curve, tracking moves in U.S. Treasuries. The 10-year

was up 8 basis points at 3.232%, after earlier

touching its highest level since November 20 at 3.237%.