CANADA FX DEBT-C$ helped by firmer oil and euro gains
* Canadian dollar at C$1.2455, or 80.29 U.S. cents * Bond prices lower across the maturity curve TORONTO, June 2 (Reuters) - The Canadian dollar won back some value against its U.S. counterpart on Tuesday on the back of a rising euro currency and buoyant crude oil prices. "We're owing our strength to the euro rally here, but then it could peter out at any time depending on news there, so it's tenuous," said Don Mikolich, executive director for foreign exchange sales at CIBC World Markets. The euro bounced on an above-forecast rise in euro zone inflation and renewed efforts to solve the Greek debt crisis. Oil prices rose ahead of a meeting of major oil exporters. "With oil prices at and above $60, it's hard to see Canada tanking too dramatically," Mikolich said. At 9:46 a.m. EDT (1346 GMT), the Canadian dollar was trading at C$1.2455 to the greenback, or 80.29 U.S. cents, stronger than the Bank of Canada's official close on Monday of C$1.2535, or 79.78 U.S. cents. The currency stayed within Monday's trading range, with its weakest level at C$1.2535. Canadian government bond prices were lower across the maturity curve, with the two-year price off 2.5 Canadian cents to yield 0.582 percent and the benchmark 10-year falling 40 Canadian cents to yield 1.677 percent. The Canada-U.S. two-year bond spread was -8.3 basis points, while the 10-year spread was -56.6 basis points. (Reporting by Alastair Sharp; Editing by Nick Zieminski)
© Thomson Reuters 2017 All rights reserved.