CANADA FX DEBT-C$ falls as oil, stocks weaken

Fri Jun 12, 2009 4:49pm EDT
 
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* C$ finishes down at 89.45 U.S. cents

* Oil settles lower at around $72, pressures currency

* Bank of Canada comments hurt C$ sentiment

* Bonds flat to higher as supply concerns ease (Adds details, quote)

By Jennifer Kwan

TORONTO, June 12 (Reuters) - The Canadian dollar fell against the U.S. dollar on Friday as stock markets and commodity prices sagged, while the greenback strengthened.

The Canadian dollar was also pressured by comments by Bank of Canada Governor Mark Carney on Thursday that the rapid appreciation of the Canadian currency could hinder economic recovery. Shortly after Carney's remarks, Finance Minister Jim Flaherty said the rise of the currency is a concern "if there's a speculative element".

"The comments just sort of reinforce those concerns from the perspective of the government and that has managed to shake out the long Canada positions," said George Davis, chief technical strategist, RBC Capital Markets.

The Canadian dollar, which touched a low of 88.90 U.S. cents on Friday, finished the session at C$1.1179 to the U.S. dollar, or 89.45 U.S. cents, down from C$1.1032 to the U.S. dollar, or 90.65 U.S. cents, on Thursday.   Continued...