2 Min Read
By Frank Pingue
TORONTO, May 6 (Reuters) - The Canadian dollar reclaimed ground lost overnight and rose versus the U.S. currency on Wednesday morning, due partly to domestic building permits data that came in much stronger than expectations.
Canada's currency rose as high as C$1.1721 to the U.S. dollar, or 85.32 U.S. cents, up comfortably from an overnight low of C$1.1826 to the U.S. dollar or 84.56 U.S. cents.
A good portion of the move followed data that showed the value of building permits rose by 23.5 percent in March from February after five months of declines. [ID:N06546133]
"The market isn't looking for reasons to sell risk, it's looking for reasons to buy risk, so the building permits data certainly played to the audience there," said David Watt, senior currency strategist at RBC Capital Markets.
By 9:10 a.m. (1310 GMT), the Canadian dollar had retreated slightly to C$1.1748 to the U.S. dollar or 85.12 U.S. cents, still up from C$1.1761 to the U.S. dollar, or 85.03 U.S. cents, at Tuesday's session close.
Data that showed U.S. private employers cut fewer jobs than expected last month also helped boost sentiment and convinced some investors to move into perceived higher-risk currencies like the Canadian dollar, according to Watt.
Canadian bond prices were lower across the curve alongside the bigger U.S. Treasury market as the data from both sides of the border lessened the appeal of more secure assets like government debt. (Editing by Jeffrey Hodgson)