CANADA FX DEBT-C$ closes weaker after trading in wide range

Mon Mar 16, 2009 5:20pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ gives up session's gains

* Bond prices give way to rising stocks

TORONTO, March 16 (Reuters) - The Canadian dollar finished lower against the U.S. currency on Monday, capping a day that saw it move with the quickly changing tolerance for risk.

The market appeared willing to take on more risk at the start of the session, with the stage set for a firmer tone in equity markets and positive remarks about the U.S. economic outlook on the weekend from U.S. Federal Reserve Chairman Ben Bernanke.

But as the North American trading day wore on, the gains on U.S. stocks disippated and so did those of the Canadian dollar. The Toronto Stock Exchange carved out its fifth straight higher close, but was well off the day's peak.

"The market took its cue originally buying up risk and then taking it back, which really speaks to the type of choppy, volatile, illiquid trading that we've got in the market right now," said Jack Spitz, managing director of foreign exchange at National Bank Financial Group.

The Canadian dollar finished at C$1.2735 to the U.S. dollar, or 78.52 U.S. cents, down slightly from C$1.2725 to the U.S. dollar, or 78.59 U.S. cents, at Friday's close.

It had climbed as high as C$1.2635 to the U.S. dollar, or 79.15 U.S. cents, and as low as C$1.2797 to the U.S. dollar, or 78.14 U.S. cents.

The Canadian dollar was largely lagging other major currencies. In comparison, the euro hit a five-week high versus the greenback. [ID:FRX/]   Continued...