CANADA FX DEBT-C$ firms on Greek debt deal hopes

Tue Feb 7, 2012 5:08pm EST
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(Adds details, analyst comments)

* C$ ends at C$0.9948 to the US$, or $1.0052

* Greek debt deal progress lifts market

* Bond prices mostly lower

By Jon Cook

TORONTO, Feb 7 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Tuesday, as commodities were boosted by renewed optimism that a Greek debt deal was near.

A range of commodity linked currencies like the Canadian dollar rallied on news Greece was close to terms on a bailout, after a Greek official said Athens was drafting a list of austerity reforms needed to clinch a new financial package.

Failure to secure the 130 billion euro ($170 billion) rescue would mean Greece faces a messy debt default that could destabilise the entire European Union.

"The worst-case scenario, which is a disorderly default and Greece being cut off from the EU, no longer seems imminent," said David Woo, head of global rates and currencies research at Bank of America Merrill Lynch. "From the market's standpoint, at least for the time being, more orderly conditions are going to prevail."   Continued...