CANADA FX DEBT-C$ ticks higher on firm equity markets

Fri Nov 19, 2010 4:59pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ slightly up at 98.23 U.S. cents

* Bond prices weaken

(Updates to close)

By Claire Sibonney

TORONTO, Nov 19 (Reuters) - Canada's dollar firmed against the greenback on Friday, helped by rising equity markets, but China's move to tighten monetary policy pressured resource prices and kept the commodity-linked currency in a tight range.

China ordered lenders to lock up more of their money at the central bank for the second time in two weeks, stepping up its battle to pull excess cash out of the economy before inflation has a chance to take off. [ID:nL3E6MJ0N8]

The move hit the price of oil and base metals but was brushed off by fairly solid North American stocks. [.N] [.TO]

"The U.S. dollar itself is mixed with commodity currencies including Canada being weighed upon by the drop in correlated prices," said Jack Spitz, managing director of foreign exchange at National Bank Financial.

"Equities on the other hand are marginally higher, which would put a bid to risk, which should theoretically put a bid to the Canadian dollar."   Continued...