CANADA FX DEBT-C$ little changed vs US$; heading for weekly fall

Fri Mar 22, 2013 9:40am EDT
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* C$ at C$1.0242 vs US$, or 97.65 U.S. cents
    * Cyprus news pushes currency weaker, later recovers
    * C$ likely stuck in C$1.02 - C$1.03 range without catalysts

    By Alastair Sharp
    TORONTO, March 22 (Reuters) - The Canadian dollar was little
changed versus its U.S. counterpart on Friday after a choppy
overnight session dominated by news from Europe on Cyprus'
search for a bailout to stave off bankruptcy.
    The currency is on track for a 0.4 percent weekly slip
against the greenback, which continues to benefit from signs of
economic recovery and its attraction for safe haven flows.
    "The bias is going to be to sell Canadian dollar," said John
Curran, senior vice president at CanadianForex. "That was seen
yesterday down around the C$1.02 area, you get anywhere close to
the C$1.01 handle and people are going to be happy to sell
    At 9:21 a.m. (1321 GMT) the Canadian dollar was
trading at C$1.0242 to the greenback, or 97.65 U.S. cents, just
up from its C$1.0243, or 97.63 U.S. cents, close on Thursday.
    Russia rebuffed Cypriot entreaties for aid on Friday,
leaving the island's increasingly isolated leaders scrambling to
strike a bailout deal with the European Union by next week or
face the collapse of its financial system. 
    The loonie strengthened against the Aussie after
hitting its weakest level in more than a year on Thursday, but
was weaker against the euro and the Swiss franc
    Prices for Canadian government debt were broadly but
marginally lower, with the two-year bond off a
Canadian cent to yield 0.988 percent and the benchmark 10-year
bond slipping 4 Canadian cents to yield 1.820