CANADA FX DEBT-C$ climbs on domestic data, easing Irish fears

Thu Nov 18, 2010 4:38pm EST
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* C$ ends at 97.90 U.S. cents

* Risk appetite, domestic data supports C$

* Bond prices slightly lower (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, Nov 18 (Reuters) - Canada's dollar ended higher against its U.S. counterpart on Thursday as optimism that Ireland may soon resolve its debt woes nudged investors toward higher-yielding currencies and away from the greenback.

Global stocks soared on Thursday, while the euro firmed as uncertainty about the Irish debt crisis ebbed. [FRX/] [MKTS/GLOB]

Ireland's central bank chief said on Thursday he expected Dublin to receive tens of billions of euros in loans from European partners and the IMF to shore up its shattered banks. [ID:nLDE6AH0HV] [FRX/]

"It was obviously the news, or the expectations, that Ireland would accept EU and IMF support. At least a temporary resolution of that situation was what helped risky assets," said Mark Chandler, head of Canadian fixed income and currency strategy.

Chandler said the Canadian currency also got a bounce from domestic data that showed the composite leading indicator rose 0.2 percent in October after dropping in September, while wholesale trade unexpectedly rose 0.4 percent in September. [ID:nSCLIME67B] [ID:nN18271262]   Continued...