CANADA FX DEBT-C$ falls in volatile session, risk appetite fades

Wed Feb 4, 2009 4:29pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ falls versus greenback after early session rally

* Currency trades in wide range as sentiment shifts

* Bond prices extend fall after less dire U.S. data (Adds details, comments and closing numbers)

By Frank Pingue

TORONTO, Feb 4 (Reuters) - The Canadian dollar closed lower on Wednesday after a session that included big swings in both directions as pressing concerns about the global economy more than offset an earlier desire to take on riskier assets.

Concerns about the U.S. government's plan to stabilize the bank sector prompted a move back into the greenback, considered a safe-haven play, and undid the Canadian currency's early move to its highest level since Friday.

"It's risk on, risk off. And the switch is back in the off position at the moment and so the (U.S.) dollar does better," said Shaun Osborne, chief currency strategist at TD Securities. "But it's very thin and it's still a market where relatively small orders can push (the currency) around."

The Canadian dollar closed at C$1.2320 to the U.S. dollar, or 81.17 U.S. cents, down from C$1.2301, or 81.29 U.S. cents, at Tuesday's close.

This was little changed from the previous two North American session closing levels. But during the session on Wednesday it rallied as high as C$1.2226, or 81.79 U.S. cents, and fell as low as C$1.2440, or 80.39 U.S. cents.   Continued...