CANADA FX DEBT-C$ rises against broadly weaker greenback

Tue Jun 7, 2011 9:30am EDT
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 * C$ rises to C$0.9740 vs US$ or $1.0267
 * Greenback weakens after China comments on U.S. assets
 * Bond prices lower
 TORONTO, June 7 (Reuters) - Canada's dollar rose against a
broadly weaker U.S. dollar on Tuesday as after bearish comments
out of China on U.S. assets and improved market sentiment on
Greece helped put a floor under commodity prices.
 The U.S. currency hit a one-month low against a basket of
currencies on Tuesday after a Chinese official warned against
the risks of "excessive" U.S. dollar holdings, as Washington
could take steps to further weaken the greenback.
 U.S. Federal Reserve Chairman Ben Bernanke will be speaking
on the U.S. economy later on Tuesday.
 Improved investor confidence was also working in the
Canadian dollar's favor, said David Tulk, chief Canada macro
strategist at TD Securities.
 "There was some pretty encouraging data out of Europe, as
well as some constructive comments by ECB's Trichet talking
about the potential rollover of some of Greece's debt," he
 European Central Bank chief Jean-Claude Trichet said a
restructuring of Greece's public debt, which many in the market
see as inevitable, is inappropriate as long as the government
follows through on reforms. [ID:nN06285731]
 "That's generally putting markets in more of a bit more of
a positive mood and  showing up as a weaker dollar that has
helped the Canadian dollar, along with other currencies," Tulk
 At 9:20 a.m., the Canadian dollar [CAD=D4] was at C$0.9740
to the U.S. dollar, or $1.0276, up from a North American close
of C$0.9808, or $1.0196, on Monday. The currency spent the
overnight session in a range of 0.9802 and 0.9735.
 The weaker greenback gave a boost to commodities traded in
U.S. dollar. The price of gold rose firmed to $1550 an ounce
before falling back to around $1545.
 Canada is a major exporter of commodities, and swings in
their prices often influence its currency. [ID:nLDE68E0P8]
 Canada's two-year bond [CA2YT=RR] was down 3 Canadian cents
to yield 1.444 percent, while the 10-year bond [CA10YT=RR] was
down 40 Canadian cents to yield 3.051 percent.
 ( Reporting by John McCrank, Editing by W Simon )