CANADA FX DEBT-C$ rallies to 13-week high on risk appetite

Wed Apr 15, 2009 1:49pm EDT
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 * Canadian dollar rises as high as 83.24 U.S. cents
 * Improved risk appetite helps fuel rally
 * Bond prices lower across curve
 By Frank Pingue
 TORONTO, April 15 (Reuters) - Canada's currency shot to its
highest level in 13 weeks versus the U.S. dollar on Wednesday
afternoon as improved sentiment lifted equities from an earlier
low and encouraged investors to seek out riskier assets.
 The Canadian dollar rose as high as C$1.2013 to the U.S.
dollar, or 83.24 U.S. cents, which marked its strongest level
since Jan. 12. That was up from C$1.2140 to the U.S. dollar, or
82.37 U.S. cents, at the end of Tuesday's North American
 That was also comfortably above the C$1.3066 to the U.S.
dollar, or 76.53 U.S. cents, that the Canadian dollar fell to
on March 9, which marked its lowest level since Sept 2004.
 "The speed of the economic downturn is starting to slow
down a little and moderate a little bit and people are taking
heart from that and bidding up riskier assets," said George
Davis, chief technical strategist at RBC Capital Markets.
 "We are starting to (see) some instances where we're
getting topside surprises in the data and that is sort of
leading people to the conclusion that we are in an environment
where things are 'less bad'."
 The S&P/TSX composite index .GSPTSE was down 0.26 percent
after falling more than 1 percent earlier in the session. U.S.
equities were generally stronger.
 Canadian bond prices, with no domestic economic news to
influence a move, were pinned lower across the curve alongside
the bigger U.S. Treasury market, which fell as many investors
shed safe-haven bond holdings in favour of equities.
 (Editing by Jeffrey Hodgson)