CANADA FX DEBT-C$ edges higher as oil climbs

Thu Jun 11, 2009 9:39am EDT
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By Jennifer Kwan

TORONTO, June 11 (Reuters) - The Canadian dollar rose against the U.S. dollar on Thursday, lifted in part by firmness in global equities and higher oil prices after the International Energy Agency raised its 2009 oil demand estimates.

At 9:18 a.m. (1318 GMT), the currency was at C$1.1023 to the U.S. dollar, or 90.72 U.S. cents, compared with Wednesday's finish at C$1.1080 to the U.S. dollar, or 90.25 U.S. cents.

World stocks edged up and the U.S. dollar rose against the yen on Thursday after U.S. economic data showed a rise in U.S. retail sales and a slight decline in first-time jobless claims. [MKTS/GLOB] [FRX/]

Oil CLc1 rose to $72 a barrel after the IEA raised its estimate for 2009 oil demand, adding to signs the fall in consumption may have bottomed out. [ID:nSIN191080]

Investors would most likely be eyeing a speech by Bank of Canada Governor Mark Carney later on Thursday, said George Davis, chief technical strategist at RBC Capital Markets.

"He may either discuss the Canadian dollar in his speech or be asked about it later," said Davis.

"It's going to be interesting to see what the bank says if that issue does come up. I think they'll certainly flag the risks that the strength in the Canadian dollar brings to the recovery."

The federal government will also be providing a fiscal update, but that event will likely have a negligible effect on the Canadian dollar, said Davis.   Continued...