CANADA FX DEBT-C$ boosted by Greek austerity vote

Mon Feb 13, 2012 4:58pm EST
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* C$ closes up at C$0.9993 vs US$, or $1.0007

* Bond prices drift lower

By Claire Sibonney

TORONTO, Feb 13 (Reuters) - Canada's dollar edged up against the greenback on Monday after Greece's parliament passed tough austerity measures to avoid a debt default, but doubts about whether European leaders will fully support Athens, or whether it will be able to keep its austerity promises, subdued early enthusiasm.

The Canadian currency tracked a broad move higher by commodities and equities, but the gains looked fragile with several issues still to be resolved before the shadow of a messy debt default in Greece is lifted.

"There are still a lot of hurdles ahead of us but we are in a better place than we were at the end of last week," said Camilla Sutton, chief currency strategist at Scotia Capital.

"I think the biggest question mark is likely the ... private sector involvement for the debt negotiations."

Greek lawmakers on Sunday backed sweeping budget cuts in exchange for a 130 billion euro bailout from the European Union and the International Monetary Fund.

Euro zone finance ministers meeting on Wednesday, however, may still withhold final approval for the debt package until it is clear what proportion of Greece's private creditors will agree to take losses.   Continued...