CANADA FX DEBT-C$ higher as oil climbs above $74

Fri Dec 18, 2009 8:29am EST
 
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 * C$ edges higher at 93.84 U.S. cents
 * Oil climbs above $74 a barrel on Iran, Iraq reports
 * Bonds flat across the curve
 By Jennifer Kwan
 TORONTO, Dec 18 (Reuters) - Canada's dollar rose against
the U.S. dollar on Friday morning as the price of oil, a key
Canadian export, rose above $74 a barrel and the greenback
weakened broadly.
 Oil CLc1 rose on Friday after an Iraqi official said
Iranian troops briefly entered an Iraqi oilfield on Thursday
[ID:nLDE5BH167], and on the prospect of increased winter
demand. [O/R]
 "One of the main (factors lifting the Canadian dollar) is
concern over the Iraqi oil supply and consequently oil prices
have risen and that has helped the Canadian dollar surge," said
Eric Lascelles, chief economics and rates strategist at TD
Securities.
 "It's also the case that the U.S. dollar is a bit soft
today," he added. "The risk aversion trade is unwinding once
again."
 The euro stabilised on Friday after this week's steep
losses against the dollar and yen and rose off nine-month lows
versus the Swiss franc while higher oil prices helped European
stocks higher in thin year-end trade. [MKTS/GLOB]
 At 8:00 a.m. (1300 GMT), the Canadian dollar was at
C$1.0656 to the U.S. dollar, or 93.84 U.S. cents, up from
Thursday's finish at C$1.0703 to the U.S. dollar, or 93.43 U.S.
cents.
 With no market moving economic data to speak of, Canadian
bond prices were little changed across the curve, said Mark
Chandler, fixed income strategist RBC Capital Markets.
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)