Canadian dollar inches up as U.S. rescue vote eyed

Wed Oct 1, 2008 4:28pm EDT
 
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* Canadian dollar rises 0.2 percent against greenback

* Investors await vote on revised U.S. bailout plan

* Bonds rally on safe haven bid as equities drop

By John McCrank

TORONTO, Oct 1 (Reuters) - The Canadian dollar rose against the U.S. dollar on Wednesday in a slight rebound from the big losses of the previous session as investors awaited a key vote on the revised U.S. bailout plan for financial markets.

Bond prices rallied as investors looked for a safe place to park their cash in response to the volatility in the stock markets.

The Canadian dollar closed the North American session at C$1.0620 to the U.S. dollar, or 94.16 U.S. cents, up from C$1.0642, or 93.97 U.S. cents, at Tuesday's close.

The currency rose 0.2 percent against the greenback, barely cutting into the 1.9 percent it dropped the day before when tight liquidity had investors scrambling to buy greenbacks to balance their books at month end.

The Canadian unit moved higher in the overseas session, but without conviction as uncertainty over the fate of the U.S. rescue package kept many investors on the sidelines.   Continued...