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Canadian dollar falls 0.3% against the greenback

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For the week, the currency was down 0.2%

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Trades in a range of 1.4384 to 1.4463

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Bond yields edge lower across the curve

(Updates market pricing)

By Fergal Smith

TORONTO, Jan 3 (Reuters) - The Canadian dollar weakened

against its U.S. counterpart on Friday and extended a streak of

weekly declines as investors weighed multiple headwinds for the

commodity-linked currency, including a faltering Chinese

economy.

The loonie was trading 0.3% lower at 1.4440 to the

U.S. dollar, or 69.25 U.S. cents, moving closer to a near

five-year low that it touched last month at 1.4467.

The currency traded in a range of 1.4384 to 1.4463, while it

posted a weekly decline of 0.2%. That was its sixth straight

weekly decline, the longest such stretch since August 2023.

"Much of the Canadian dollar weakness in the last year has

been U.S. dollar strength but that's not the case today," said

Adam Button, chief currency analyst at ForexLive.

"As a global growth proxy, for the Canadian dollar to work

in 2025 we need to see a resurgent China and China is

struggling."

Canada is a major commodities producer so the loonie tends

to be sensitive to prospects for global growth.

China will sharply increase funding from ultra-long treasury

bonds in 2025 to spur business investment and consumer-boosting

initiatives, a state planner official said, as Beijing cranks up

fiscal stimulus to revitalize the world's second-biggest

economy.

Additional headwinds for the loonie include the threat of

U.S. tariffs on Canadian imports and political uncertainty, say

analysts.

Canadian Prime Minister Justin Trudeau has been under

increasing pressure to quit since his finance minister resigned

on Dec. 16.

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

currencies but was up for the week, its fifth straight weekly

gain, on expectations that the U.S. economy will continue to

outperform its peers globally this year.

Canadian bond yields edged higher across the curve. The

10-year was up 1.2 basis points at 3.233%.