CANADA FX DEBT-C$ turns higher after U.S. economic data

Tue Sep 15, 2009 9:50am EDT
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* C$ at 92.66 U.S. cents

* Bonds lower after U.S. economic data

(Adds details, quote)

By Jennifer Kwan

TORONTO, Sept 15 (Reuters) - Canada's dollar rose against the greenback on Tuesday morning, boosted by reassuring U.S. retail sales data that helped to fuel optimism about economic recovery.

The currency benefited from government data that showed sales at U.S. retailers rose at their fastest pace in three-and-half years in August, while a gauge of manufacturing in New York State hit a near two-year high. [ID:nN15548319]

"The initial reaction from the market to the U.S. retail sales was a very sharp turn in risk sentiment from risk aversion to risk appetite. Immediately commodity-based currencies benefited from that," said Matthew Strauss, senior currency strategist, RBC Capital Markets.

At 9:18 a.m. (1318 GMT), the Canadian unit was at C$1.0792 to the U.S. dollar, or 92.66. U.S. cents, up from Monday's close at C$1.0835 to the U.S. dollar, or 92.29 U.S. cents.

The U.S. currency also gained following the data. [FRX/]   Continued...