CANADA FX DEBT-C$ weakens after Greek deal hits snag

Fri Feb 10, 2012 10:53am EST
 
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(Adds details, analyst's comments)

* C$ at C$1.0017 to US$, or 99.83 U.S. cents

* Greek debt deal stalls

* Canada trade surplus helps currency pare losses

* Bond prices higher

By Jon Cook

TORONTO, Feb 10 (Reuters) - The Canadian dollar slumped on Friday against its U.S. counterpart after a bailout deal for Greece met with fresh opposition, but the currency's slide was tempered by data that showed Canada's trade surplus unexpectedly rose to a three-year high in December.

Overnight the Canadian dollar had fallen below parity with the greenback for the first time in more than a week after the leader of a far-right party in Greece's coalition government said he could not back a recently negotiated debt bailout agreement, reigniting worries about a chaotic default.

Athens faces a deadline next week to have a deal in place to secure a 130 billion euro ($172.95 billion) rescue package from the European Union to finance massive bond redemptions coming due in March.   Continued...