CANADA FX DEBT-Risk appetite boosts C$, bonds fall

Mon Nov 9, 2009 8:40am EST
 
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 * C$ rises to 94.14 U.S. cents
 * Bonds fall as risk appetite rises
 TORONTO, Nov 9 (Reuters) - Canada's currency rose against a
broadly weaker U.S. dollar on Monday after a the Group of 20
promised to keep stimulus policies in place until the global
economic recovery was assured.
 Canadian bonds fell as risk appetite boosted global stocks
and U.S. stock futures suggested a jump at the open, lowering
the safe-haven bid.
 The G20 finance ministers and central bank governors,
meeting over the weekend in Scotland, refrained from directly
addressing currencies in talks on rebalancing the global
economy. [ID:nLQ516726]
 Also, the International Monetary Fund said in a report
while the U.S. dollar had depreciated in recent months, it
still remained on the "strong" side, putting pressure on the
U.S. unit.
 The Canadian currency's strength was in line with other
global currencies that took advantage of renewed risk appetite
that suggested U.S. interest rates will stay low for some time,
particularly after last week's soft U.S. jobs data. [FRX/]
 "It's really the comments that were attributed to the IMF
as well as the G20 that have had the U.S. dollar under
pressure," said Jack Spitz, managing director of foreign
exchange at National Bank Financial.
 "The week is starting with increased risk appetite. Once
again there's no guarantee that risk appetite maintains itself
because there's a lot of volatility in these markets right
now."
 Bouncing off its lowest closing level in nearly a week, the
Canadian dollar also found support from record gold and rising
oil prices. [GOL/] [O/R]
 The currency held steady after Canadian data showed housing
starts rose in October. [ID:nHND005510]
 At 8:20 a.m. (1320 GMT), the Canadian dollar was at
C$1.0622 to the U.S. dollar, or 94.14 U.S. cents, up from
C$1.0753 to the U.S. dollar, or 93.00 U.S. cents, at Friday's
close.
 The two-year bond CA2YT=RR fell 2 Canadian cents to
C$99.68 to yield 1.411 percent, while the 10-year bond
CA10YT=RR shed 20 Canadian cents to C$101.65 to yield 3.544
percent.
 (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)