CANADA FX DEBT-C$ up but off 13-week high, bonds gain

Thu Aug 5, 2010 5:26pm EDT
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* C$ rises to 98.37 U.S. cents

* Bonds gain in safety bid

* Flaherty not worried about C$ rise, cites strong economy

* Next up: Friday's jobs data from Canada, U.S. (Updates throughout)

By Ka Yan Ng

TORONTO, Aug 5 (Reuters) - Canada's dollar backed off a 13-week high against the U.S. dollar on Thursday, with volatility noted from comments by the country's finance minister and ahead of North American job reports.

In an exclusive interview with Reuters, Finance Minister Jim Flaherty said the rise in Canada's currency "makes sense" because investors are snapping up the country's assets and the economy is growing nicely. [ID:nN05141152]

The comments contrasted with concerns he expressed last year about the currency's sharp rise, which was seen at the time as a warning shot against speculators.

The finance minister also did not appear overly worried that the currency was nearing parity with the U.S. dollar, a level it has not seen since April.   Continued...