CANADA FX DEBT-C$ gains, bonds fall, on Greek rescue speculation

Tue Feb 9, 2010 8:36am EST
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 * C$ rises to 93.76 U.S. cents
 * Bonds fall on Greece bailout speculation
 TORONTO, Feb 9 (Reuters) - Canada's currency firmed against
the U.S. dollar on Tuesday as risk sentiment increased on
speculation that initiatives are underway to help fix Greece's
debt problems.
 European Central Bank President Jean-Claude Trichet is
cutting short a trip to Australia to attend a special European
Union summit, prompting a rise in global stock markets.
 Additionally, Canada's commodity-linked dollar found
support from firmer oil prices, which rose toward $73 a barrel.
 At 8:20 a.m. (1320 GMT), the Canadian dollar was at
C$1.0666 to the U.S. dollar, or 93.76 U.S. cents, up from
C$1.0745 to the U.S. dollar, or 93.07 U.S. cents, at Monday's
 "Equities look a little firmer than where we left things
yesterday, so are commodities. A little bit of risk is being
put back on, and the Canadian dollar is benefiting as a
result," said Firas Askari, head of foreign exchange trading at
BMO Capital Markets.
 "The risk is back on with euro bouncing because of Trichet
coming back for the quasi-hastily called EU summit with hopes
of Greece being bailed out."
 Canadian bond prices were lower across the curve on rising
risk sentiment.
 The two-year bond CA2YT=RR fell 3 Canadian cents to
C$100.48 to yield 1.264 percent, while the 10-year bond
CA10YT=RR lost 14 Canadian cents to C$103.05 to yield 3.365
  (Reporting by Ka Yan Ng; Editing by Padraic Cassidy)