CANADA FX DEBT-C$ gains, fears ease of quick U.S. stimulus pullback

Thu Jun 27, 2013 10:03am EDT
 
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* C$ at C$1.0461 vs US$, or 95.59 U.S. cents
    * After US dollar's recent jump, some pullback
    * Rising oil price helps Canadian dollar

    By Alastair Sharp
    TORONTO, June 27 (Reuters) - The Canadian dollar gained
slightly against its U.S. counterpart on Thursday as commodity
currencies benefited from a rising oil price and reduced fears
that U.S. Federal Reserve will move quickly to withdraw monetary
stimulus.
    "We've seen a bit more of a bounce in commodity currencies
overnight," said Greg Moore, a currency strategist at TD
Securities. "Nothing fundamental has shifted to drive that move,
but it's essentially a fading of the tapering trade that has
been so strong and so broad since last Wednesday."
    The U.S. dollar had risen forcefully since Federal Reserve
Chairman Ben Bernanke last week discussed a potential slowing of
the pace of its stimulative asset purchases as the economy
improves.
    Other Fed officials have since sought to downplay the notion
of an imminent end to the bank's monetary stimulus as equities
markets retreated and bond yields spiked.
    At 9:36 a.m. (1336 GMT) the Canadian dollar was
trading at C$1.0461 to the greenback, or 95.59 U.S. cents,
compared with C$1.0479, or 95.43 U.S. cents, at Wednesday's
North American close.
    Traders await comments from two Fed officials Thursday for
more evidence on the central bank's thinking. 
    The two-year bond was up 5 Canadian cents to
yield 1.200 percent, while the benchmark 10-year bond
 rose 46 Canadian cents to yield 2.442 percent.