CANADA FX DEBT-C$ stumbles on mounting Greek concerns

Mon Feb 6, 2012 9:37am EST
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* C$ at C$0.9985 to the US$, or US$1.0015

* Greek debt worries weigh on market

* Bond prices mostly higher

By Jon Cook

TORONTO, Feb 6 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday, falling in tandem with the euro, as worries about Greece's unresolved debt deal took the lustre off Friday's confidence-boosting U.S. jobs data.

A European Commission spokesman said Greece had already gone beyond the deadline for finalising talks on the second financing package from the euro zone and the International Monetary Fund, and Athens needed urgently to take decisions.

"It's got the market's full attention at the moment," said Steve Butler, director of foreign exchange trading at Scotia Capital. "The longer we wait and the closer we get to the next deadline the more difficult things become."

Greece's coalition members must agree to painful terms of a new bailout worth 130 billion euros ($170.6 billion) before euro zone finance ministers next meet. Failure to reach a deal would leave the prospect of an unmanaged Greek debt default when bond repayments fall due in March.

At 9:18 a.m. (1418 GMT), the Canadian dollar was at C$0.9985 to the U.S., or US$1.0015, down nearly half a cent from where it finished on Friday at C$0.9936 against the greenback, or US$1.0064.   Continued...