CANADA FX DEBT-C$ hangs on to gains on purchasing activity rise

Mon Jan 7, 2013 4:40pm EST
 
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* C$ at C$0.9857 versus US$, or $1.0145

* Ivey PMI helps C$ adds to gains notched last week

* Global stock markets lower, commodity prices mixed

By Alastair Sharp

TORONTO, Jan 7 (Reuters) - The Canadian dollar gained against its U.S. counterpart on Monday, with a rise in purchasing activity for December helping the currency hold on to rises notched late last week as investors expressed guarded optimism about the economy.

Ivey Purchasing Managers Index data released on Monday showed a modest increase in purchases offset by falls in its readings for employment, inventories and prices.

The report led to a measured appreciation in the Canadian dollar as it added some support to a robust jobs report from Statistics Canada last Friday that pushed the currency markedly stronger.

"Either we have a delay on the day of reckoning ... or it might well be that we are currently underestimating the pace of growth in the Canadian economy," said Jimmy Jean, economic strategist at Desjardins Securities in Montreal.   Continued...