CANADA FX DEBT-C$ rises as oil pierces $83 a barrel

Wed Jan 6, 2010 4:40pm EST
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* C$ ends up at 96.85 U.S. cents

* Bonds notch mixed performance (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, Jan 6 (Reuters) - The Canadian dollar climbed against the U.S. dollar on Wednesday, boosted by a weaker greenback and by rising crude oil prices, which punched through the $83 a barrel mark.

The U.S. dollar fell against the euro after minutes from the U.S. Federal Reserve's latest policy meeting highlighted the possibility of more stimulus measures for the economy. [FRX/]

Oil prices climbed for a 10th straight day to above $83 a barrel, boosted in part on expectations that frigid weather will boost demand for heating fuel. [O/R]

As well, ongoing Canadian dollar sentiment is helping to push the dollar/Canada towards a low of C$1.207, said Camilla Sutton, currency strategist at Scotia Capital.

"Breaking that (level) would obviously indicate new downward momentum on dollar/Canada," she said. "I suspect we'll see a test of that in the next couple of sessions."

The Canadian dollar finished at C$1.0325 to the U.S. dollar, or 96.85 U.S. cents, up from C$1.0390 to the U.S. dollar, or 96.25 U.S. cents, at Tuesday's close. Earlier on Wednesday, it shot as high as C$1.0313 to the U.S. dollar.   Continued...