CANADA FX DEBT-C$ rises to one-week high on strong investment data
* C$ at C$1.0417 vs US$, or 95.99 U.S. cents * Foreign investors buy C$8.36 bln in Canadian securities * Bond yields high across the maturity curve By Leah Schnurr TORONTO, Nov 18 (Reuters) - The Canadian dollar strengthened to a one-week high against the greenback on Monday after data showed foreign demand for Canadian securities surged in September, and as markets were encouraged by economic and social reforms announced by China. Foreign investment in Canadian securities strengthened, incuding acquisitions of stocks which rose to the highest level since September 2009. Non-residents picked up C$8.36 billion ($8.04 billion) worth of overall securities in September, the highest inflow in five months and up from the C$2.08 billion investment the previous month. "An overall strong investment climate in Canada will garner loonie strength and have more people investing in Canada over the longer term," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. The loonie hit a session peak of C$1.0414 shortly after the data was released, the currency's highest level in more than a week. The Canadian dollar was last at C$1.0417 to the greenback, or 95.99 U.S. cents, compared to Friday's close of C$1.0447, or 95.72 U.S. cents. The currency also followed global markets higher as China unveiled its boldest set of economic and social reforms in nearly three decades late last week. Analysts said the moves suggested greater liberalization for the world's second-largest economy. "A lot more decisions are going to be made in the future with free market intentions in mind, so there's going to be a lot more access to capital and the free markets are going to determine how resources are allocated," said Smith. The loonie should move in a range between C$1.0385 and C$1.0450 for the session, said Smith. Investors will also be watching for comments from Bank of Canada Senior Deputy Governor Tiff Macklem later in the morning. Canadian bond yields were higher across the maturity curve, with the two-year bond up half a Canadian cent to yield 1.114 percent, while the benchmark 10-year bond rose 4 Canadian cents to yield 2.560 percent.
© Thomson Reuters 2016 All rights reserved.