Canadian dollar flags for third week as US$ gains

Fri Jun 13, 2008 4:43pm EDT
 
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* C$ slips 0.6 pct as US$ rises on inflation worries

* Currency sags 1 pct on week; down 3 straight weeks

* Bond prices mostly lower as higher equities weigh

By John McCrank

TORONTO, June 13 (Reuters) - The Canadian dollar fell for the second straight day against the U.S. dollar on Friday, as talk of rising inflation and higher U.S. interest rates strengthened the greenback.

Canadian bond prices ended mostly lower as strong performances in the equities markets lessened the safe haven appeal of government debt.

The Canadian dollar closed at C$1.0292 to the U.S. dollar, or 97.16 U.S. cents, down from C$1.0232 to the U.S. dollar, or 97.73 U.S. cents, at Thursday's close.

For the week, the Canadian currency ended down 1 percent against the U.S. dollar, after slumping 2.6 percent last week, and 0.5 percent the week before.

"Given the focus the global monetary authorities appear to have on the U.S. dollar -- they'd like it a little bit higher, and they'd like commodities a little bit lower -- in that kind of an environment, it's probably going to be a little bit of a tough slope for the commodity currencies in the next little while," said Shaun Osborne, chief currency strategist at TD Securities.   Continued...