CANADA FX DEBT-C$ rises in tandem with global equities
TORONTO, April 2 (Reuters) - The Canadian dollar CAD= gained against the greenback on Thursday as the currency was supported by buoyant equity markets, a decrease in risk aversion and firmness in the price of oil.
The rise comes as recent economic data such as Wednesday's U.S. figures that showed sturdier U.S. factory activity and pending sales of existing homes is spurring optimism an economic recovery may be on its way.
"There's less risk aversion. We're seeing money getting pulled out of safe haven U.S. Treasuries and U.S. dollar, and flowing into equity markets and other currencies such as the Canadian dollar," said Sal Guatieri, senior economist at BMO Capital Markets.
The price of oil CLc1, of which Canada is a key exporter, rose more than $3 a barrel to above $51 on Thursday, helped by rising equities and as investors hoped G20 leaders would deliver concerted measures to restore global growth. [ID:nT180356]
At 9:09 a.m. (1309 GMT), the Canadian unit was at C$1.2469 to the U.S. dollar, or 80.20 U.S. cents, after touching 80.27 U.S. cents.
Canadian government bond prices were lower across the curve, following U.S. Treasury prices down as risk appetite and stock markets rallied. [ID:nL2975098]
The Canadian unit eked out a small gain against the greenback on Wednesday, finishing at a level that belied its volatile range as risk appetite and technicals pulled the currency off a two-week low. It closed at C$1.2610 to the U.S. dollar, or 79.30 U.S. cents. (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)
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