CANADA FX DEBT-C$ firms on hopes of progress in Greece

Mon Jun 27, 2011 5:01pm EDT
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* C$ firms to C$0.9867, or $1.0135

* Currency strengthens as Greek default fears ease

* Recovery of oil from session lows also supports

* Bond prices mostly weaker, but Canada outperforms

By Trish Nixon

TORONTO, June 27 (Reuters) - The Canadian dollar strengthened on Monday, rebounding from a 3-month low hit early in the session, as new developments in Europe helped ease fears of a Greek government debt default.

France offered a solution for banks to roll over holdings of Greek debt for 30 years, while the Greek government fought to get back-bench rebels to back a crucial austerity plan to avert bankruptcy. [ID:nLDE75P0BM]

The move helped send the euro higher against the U.S. dollar, which had been benefiting from safe-haven flows. [FRX/]

"The euro seems to have been doing a little bit better this afternoon, so the Canadian dollar might be riding a slightly less positive sentiment for the US dollar in the latter part of the day," said Avery Shenfeld, chief economist at CIBC World Markets.   Continued...