CANADA FX DEBT-C$ rises as risk appetite improves

Tue Jul 7, 2009 7:56am EDT
 
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 * C$ gets boost alongside rise in global equities
 * Moves further off Monday's low of 85.62 U.S. cents
 By Frank Pingue
 TORONTO, July 7 (Reuters) - The Canadian dollar was a touch
higher versus the U.S. currency on Tuesday morning, helped by a
a better appetite for risk as global equities rebounded after a
meaty selloff in the prior session.
 At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.1562
to the U.S. dollar, or 86.49 U.S. cents, up from Monday's close
of C$1.1591 to the U.S. dollar, or 86.27 U.S. cents.
 The move higher came as global equities turned higher and
U.S. equity futures pointed to a slightly higher open one day
after Toronto's main stock index fell 2.5 percent.
 "It's more just a general risk backdrop and people are more
comfortable with risk after yesterday's sharp equity selloff,"
said David Watt, senior currency strategist at RBC Capital
Markets. "But it's a relatively minor move and I just think
we'll trade in a range right now."
 The move higher added to momentum from late in Monday's
session and helped lift the Canadian dollar further off the
seven-week low of C$1.1680 to the U.S. dollar, or 85.62 U.S.
cents, that it hit on Monday.
 Domestic bond prices were lower across the curve as the
better appetite for risk left little demand for more secure
assets like government debt.
 (Editing by Chizu Nomiyama)