CANADA FX DEBT-C$ touches '09 high, closes lower as stocks slide

Thu May 7, 2009 4:50pm EDT
 
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* C$ rallies as high as 85.99 U.S. cents

* Key Canadian and U.S. jobs data in focus

* Bond prices end lower, outperform U.S. Treasuries

By Frank Pingue

TORONTO, May 7 (Reuters) - Canada's currency ended lower versus U.S. greenback on Thursday as a skid in equities and uncertainty ahead of key jobs data sapped risk appetite and yanked it from a six-month high hit early in the session.

The rally in equities overseas was enough to carry the Canadian dollar to C$1.1629 to the U.S. dollar, or 85.99 U.S. cents, its highest level since Nov. 6.

North American stocks rallied at the open but that quickly fizzled and took the domestic currency along for the ride as the market positioned itself for monthly jobs data due from Canada and the United States on Friday.

"Equities looked like they were off and running at the start and turned around quickly and that put a damper on the risk play and commodity currencies backed off from there," said Steve Butler, director of foreign exchange at Scotia Capital.

"We've also got that key employment report tomorrow and I think the market is probably happy to take a little bit of a breather and take some profits off the table for those people that have been riding the wave this week."   Continued...