CANADA FX DEBT-C$ higher given retreat in U.S. dollar
* C$ higher at 93.03 U.S. cents
* Move attributed to slide in U.S. dollar
* Bond prices up slightly across curve
By Frank Pingue
TORONTO, Oct 5 (Reuters) - Canada's dollar rose against the U.S. dollar on Monday morning as the Group of Seven weekend meeting reaffirmed the market's view that policymakers are comfortable with a gradually weakening greenback.
The G7 finance ministers and central bankers, who met in Istanbul, broke no new ground on currencies, saying too much foreign exchange volatility tended to threaten economic stability. [ID:nL3421338]
Analysts said that left the U.S. dollar open potentially to further weakness, opening the door for a number of currencies including the Canadian dollar, to rise against the greenback.
"In part it is just general U.S. dollar weakness," said Adam Cole, global head of foreign exchange strategy at RBC Capital Markets in London. "We came through the G7 meeting on the weekend without any concern on the weaker U.S. dollar and that's just been a signal to sell U.S. dollars generally."
At 7:30 a.m. (1130 GMT), the Canadian unit was at C$1.0749 to the U.S. dollar, or 93.03 U.S. cents, up from C$1.0825 to the U.S. dollar, or 92.38 U.S. cents, at Friday's close.
The rise in the Canadian dollar was contained as oil prices dipped below $70 a barrel on concern over the pace of the U.S. economic recovery and any revival in energy demand. [O/R] Canada is a key exporter of oil and its currency is often influenced by prices for the commodity.
Cole said the Canadian dollar's performance will continue to be driven by events outside of Canada until Friday when the key domestic report for the week, September jobs data, is due.
The report is expected to show the Canadian economy created 5,000 jobs last month.
Canadian bond prices were a touch firmer across the curve, largely mirroring a move in the bigger U.S. Treasury market. (Editing by Padraic Cassidy)
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