CANADA FX DEBT-C$ falls vs greenback after trade data

Tue Jan 13, 2009 12:06pm EST
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* C$ hits January low after trade data

* Canada trade surplus narrows more than expected

* Bonds mixed; Toronto stocks rise more than 1 percent (Adds quotes, details)

By Jennifer Kwan

TORONTO, Jan 13 (Reuters) - The Canadian dollar fell against the U.S. currency on Tuesday, hitting its weakest level this month, pressured by data that showed the country's trade surplus narrowed more than expected.

At 11:10 a.m. (1610 GMT), the Canadian currency was at C$1.2280 to the U.S. dollar, or 81.43 U.S. cents, down from C$1.2154 to the U.S. dollar, or 82.28 U.S. cents, on Monday.

At one point, the Canadian unit hit C$1.2315 to the U.S. dollar, or 81.20 U.S. cents.

Statistics Canada said on Tuesday that the country's trade surplus narrowed more than expected in November to C$1.28 billion, the smallest surplus since October 1997, due to plummeting prices for oil exports. [ID:N13254064]

"It shows that the terms of trade for Canada are obviously starting to be impacted fairly significantly by the global economic slowdown, especially the slowdown we're seeing in the United States," said George Davis, chief technical strategist at RBC Capital Markets.   Continued...