CANADA FX DEBT-C$ rises with oil, investor sentiment

Thu Jun 11, 2009 5:58pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ ends higher at 90.65 U.S. cents

* BoC's Mark Carney warns about C$'s rapid rise

* Bonds rally on weak industrial capacity data

By John McCrank

TORONTO, June 11 (Reuters) - The Canadian dollar rose against the U.S. dollar on Thursday on strength in commodities and firmer equities, even as the Bank of Canada repeated warnings that the currency's rapid rise in recent months could hamper economic recovery.

The Canadian dollar ended the session at C$1.1032 to the U.S. dollar, or 90.65 U.S. cents, up from Wednesday's finish at C$1.1080 to the U.S. dollar, or 90.25 U.S. cents.

The currency got a boost from higher U.S. crude prices CLc1, which rallied for a third straight day, rising to above $72 amid hopes the world economy is on the mend. [ID:nN11518738]

Stronger investor sentiment also helped drive up commodity prices in general. The Reuters-Jefferies CRB index .CRB, which tracks the futures of raw metals across 19 mostly U.S. markets, rose 2 percent to a seven-month high.[ID:nN11499238]

As Canada is a major exporter of oil and other commodities the currency benefited from the stronger prices, as did the Toronto Stock Exchange, which surged to nearly an eight-month high [ID:nN11498221].   Continued...