CANADA FX DEBT-C$ hits five-month high on ECB move
* C$ ends at $0.9895 vs US$ or US$1.0106
* Highest close since Sept. 16
* ECB bank loans boost sentiment
* Bond prices mostly lower
By Jon Cook
TORONTO, Feb 29 (Reuters) - The Canadian dollar rose to its highest level in more than five months against the U.S. currency on Wednesday, boosted by a massive euro-zone liquidity injection by the European Central Bank and favorable month-end purchases by institutional investors.
Around 800 banks took 530 billion euros ($708.98 billion) at the ECB's second offering of three-year funding, essentially in line with market expectations, driving demand for higher yielding currencies at the expense of the euro.
"It should be bearish for the euro because it is a form of quantitative easing," said Jack Spitz, managing director of foreign exchange trading at National Bank Financial. Continued...