CANADA FX DEBT-C$ ticks lower ahead of U.S. data

Tue Sep 15, 2009 8:24am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ at 92.01 U.S. cents

* Bonds flat ahead of U.S. economic data

TORONTO, Sept 15 (Reuters) - Canada's dollar was weaker against the U.S. currency on Tuesday, with world stocks limp and the greenback climbing, as investors shunned assets perceived to be riskier and awaited key U.S. economic data.

The U.S. dollar rose against a basket of major currencies on Tuesday as European shares were weaker, luring buyers to the safety of the U.S. currency. [FRX/]

"It looks like some risk aversion at play. What's happened is the equity markets have had a pretty good run. The market is probably profit taking a little bit and selling off some of the riskier assets," said Sal Guatieri, senior economist, BMO Capital Markets.

The Canadian political scene is also in play this week with the risk of an election raised earlier this month by the country's main opposition Liberals. Recent opinion polls give the Conservatives, which have a minority government, a lead over the Liberals.

"I guess until Friday when the confidence (vote) comes down that uncertainty may play out and may weigh on the Canadian dollar a bit," said Guatieri.

At 8:09 a.m. (1209 GMT), the Canadian dollar CAD=D3 was at C$1.0868 to the U.S. dollar, or 92.01 U.S. cents, down from Monday's close at C$1.0835 to the U.S. dollar, or 92.29 U.S. cents.

A firmer price of oil CLc1, a key Canadian export, helped to limit losses, while metals prices were mixed. [O/R] [MET/L] Moves in the Canadian currency can often be swayed by the direction of commodities prices.   Continued...