CANADA FX DEBT-C$ stumbles in biggest weekly drop this year

Fri Feb 10, 2012 4:58pm EST
 
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(Adds details, analyst comments)

* C$ ends at C$1.0028 to US$, or 99.72 U.S. cents

* Biggest weekly drop since Dec. 12-16

* Worries over Greek debt deal rattle markets

* Bond prices higher

By Jon Cook

TORONTO, Feb 10 (Reuters) - The Canadian dollar's sustained run against the greenback hit a speed bump on Friday after a key bailout deal for Greece met with fresh resistance, putting the possibility of a disorderly default back on the table.

Just 24 hours after Athens agreed to tough wage and pension cuts demanded by international lenders, the deal looked set to collapse after euro zone leaders imposed further conditions on Greece to receive its next rescue package and the country's far-right leader said he could not vote in favour of the deal.

The timing was precarious, as Greece faces a deadline next week to secure a 130 billion euro ($172.95 billion) bailout from the International Monetary Fund and the European Union to finance massive bond redemptions coming due in March.   Continued...