CANADA FX-C$ pierces parity after Singapore surprise

Thu Oct 14, 2010 8:30am EDT
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   * C$ breaks through parity, touches high of $1.002
 * Bond prices fall as risk appetite returns to market
 By Claire Sibonney
 TORONTO, Oct 14 (Reuters) - The Canadian dollar pushed
through parity against the U.S. dollar on Thursday for the
first time since April, after Singapore unexpectedly tightened
policy by letting its currency strengthen, hitting the
greenback hard.
  The U.S. dollar index hit the year's low and world stocks
hit 2-year highs with investors seeing easier U.S. monetary
policy driving a flight to high-yielding assets. [MKTS/GLOB]
 In the middle of the European morning, the Canadian
currency CAD=D4 touched a high of C$0.9980 against the U.S.
dollar, or $1.002, its strongest level since April 26.
 "We needed something more than the quantitative easing,"
said Matthew Strauss, senior currency strategist at RBC Capital
 "The Singapore story ... highlighting the divergence in
what's happening in the U.S. compared to what's happening in
Asia and that resulted in some further U.S. selling."
 (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)