CANADA FX BONDS-C$ sags as weak equities hinders risk bid

Fri Sep 18, 2009 8:06am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * C$ weakens to 93.35 U.S. cents
 * Weak oil price adds to downward pressure
 By Jennifer Kwan
 TORONTO, Sept 18 (Reuters) - The Canadian dollar fell back
against the generally stronger U.S. currency on Friday as world
equities dampened investors' thirst for risk.
 Global equities fell on Friday as investors paused after
recent gains that pushed markets in Europe and Asia to
multi-month highs. The move gave the downtrodden dollar a
respite. [MKTS/GLOB]
 "We had a bit of a risk pull back overnight. Looks like the
equities markets are a little bit lower -- not disturbingly
lower -- but a bit lower," said Steve Butler, director of
foreign exchange trading at Scotia Capital.
 "It looks like a bit of Friday profit taking."
 The move lower comes after the Canadian dollar touched an
11-month high -- hitting 94.42 U.S. cents -- against a
generally lower U.S. currency on Thursday, but fell back to
finish the session lower.
 At 7:32 a.m. (1132 GMT), the Canadian dollar was at
C$1.0712 to the U.S. dollar, or 93.35 U.S. cents, down from
Thursday's finish at C$1.0668 to the U.S. dollar, or 93.74 U.S.
cents. Overnight, it touched a low of 92.85 U.S. cents.
 Another factor pressuring the Canadian dollar was a
weakness in the price of oil CLc1, a key Canadian export,
which earlier dropped  below $72 a barrel. [O/R] Gold held
steady and base metals were generally lower. [GOL/] [MET/L]
 Canadian bond prices were little changed on Friday morning,
pausing after a rise in the previous session. The domestic
market followed the U.S. Treasury market where prices dipped in
Europe ahead of next week's near record amount of new issuance.
 (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)