CANADA FX DEBT-C$ regains ground on euro gains, firmer oil
* Canadian dollar at C$1.2408, or 80.59 U.S. cents * Bond prices mixed across the maturity curve (Updates to close) By Andrea Hopkins TORONTO, June 2 (Reuters) - The Canadian dollar gained more than a cent against its U.S. counterpart on Tuesday on the back of a rising euro currency and buoyant crude oil prices, erasing a week of losses. The euro rose more than 2 percent against the U.S. dollar after an above-forecast rise in euro zone inflation. U.S. stocks rose, helped by the dollar's decline, and bond yields rose while investors searched for clarity on Greece's debt crisis. "The catalyst to the U.S. dollar weakness is in the events in the euro zone, that has inspired some long dollar positions to be squared," said Jack Spitz, managing director of foreign exchange at National bank Financial. "The euro is up over 2 percent and the Canadian dollar is still up almost a full percent. It's been an active and volatile session," he added. Oil rose as much as 2 percent, driven by the weak dollar and expectations that U.S. crude supplies could have fallen last week for a fifth straight week. Canada is a major oil exporting country, and its currency has been especially sensitive to prices, which have plunged in the last 12 months. The Canadian dollar ended the North American session at C$1.2408, or 80.59 U.S. cents, more than one Canadian cent stronger than the Bank of Canada's official close on Monday of C$1.2535, or 79.78 U.S. cents. It climbed as high as C$1.2368 during the session, its strongest point since May 26. Canadian government bond prices were mixed across the maturity curve, with the two-year price off 4 Canadian cents to yield 0.590 percent and the benchmark 10-year falling 73 Canadian cents to yield 1.712 percent. (Additional reporting by Alastair Sharp; Editing by Nick Zieminski and Tom Brown)
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