Canadian dollar boosted by higher oil prices

Fri Sep 12, 2008 9:29am EDT
 
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* Canadian dollar bounces off Thursday's 13-month low

* Industrial capacity utilization data misses estimates

* Weak U.S. data gives shorter-dated bonds a lift

By Frank Pingue

TORONTO, Sept 12 (Reuters) - The Canadian dollar on Friday recouped all of its losses from the previous session as the U.S. dollar weakened and oil prices rose to support the commodity-linked currency, which has faltered in recent weeks.

Domestic bond prices, with no key Canadian economic data to consider, were higher on the short end of the curve alongside the bigger U.S. Treasury market as data from the United States missed estimates.

At 9:15 a.m. (1315 GMT), the Canadian unit was at C$1.0670 to the U.S. dollar, or 93.72 U.S. cents, up from C$1.0765 to the U.S. dollar, or 92.89 U.S. cents, at Thursday's close.

Earlier, the currency hit C$1.0648 to the U.S. dollar, or 93.91 U.S. cents, as the greenback slipped on concerns about the global economy and nagging concerns about Lehman Brothers, the U.S. investment bank that earlier this week failed to offer a plan on how it will raise much-needed capital.

The domestic currency climbed off the 13-month low touched during Thursday's North American session when the price of oil dropped closer to the $100-a-barrel level.   Continued...