CANADA FX DEBT-C$ lifted by U.S. data, Greek hope

Thu Feb 16, 2012 4:30pm EST
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* C$ ends at C$0.9965 vs US$, or $1.0035

* Bond prices lower across curve

* Market awaits Canada inflation data

By Jennifer Kwan

TORONTO, Feb 16 (Reuters) - The Canadian dollar rose against the U.S. currency on Thursday, surging back from a two-week low earlier in the day, on upbeat U.S. economic data and optimism that Greece has done enough to secure a second bailout.

The currency tracked world stocks and the euro higher after Greek officials said they hoped that euro zone finance ministers would sign off on the bailout deal on Monday. That would be a month before Athens needs to repay 14.5 billion euros of debt obligations due on March 20.

Also supporting the currency was a rally in U.S. stocks, which soared on upbeat U.S. jobs, manufacturing and housing data.

At its peak of C$0.9954 versus the greenback, or $1.0046, the Canadian dollar was up nearly a cent from its lows of the session, helped up by a rally in the euro and commodities, said Blake Jespersen, managing director of foreign exchange sales at BMO Capital Markets.

"All that helped lift the Canadian dollar. Not a Canadian dollar story, but it did follow the moves in other commodity-based currencies and the overall risk sentiment," he said.   Continued...