CANADA FX DEBT-C$ bounces back from early fall, bonds drop

Thu Jun 4, 2009 5:07pm EDT
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* C$ rebounds from early weakness as oil and equities firm

* Bank of Canada sounds alarm about C$ rise

* Bonds fall as equities gain

* Canada, U.S. jobs data on tap on Friday (Adds details)

By Ka Yan Ng

TORONTO, June 4 (Reuters) - The Canadian dollar rebounded against the U.S. currency on Thursday as the influence of rising equity markets and firmer oil prices outweighed Bank of Canada caution about the currency's recent strength.

The currency fell in the morning as traders digested unusually strong comments from the central bank about the Canadian dollar's recent appreciation. [ID:nN0479627]

But as the day progressed, it bounced back, aided by gains on equity markets and the rising price of oil, as the market concluded the central bank's comments were not that surprising.

The Canadian unit finished at C$1.0968 to the U.S. dollar, or 91.17 U.S. cents, up from C$1.1084 to the U.S. dollar, or 90.22 U.S. cents, at Wednesday's close.   Continued...