CANADA FX DEBT-C$ hits 1-week high as oil prices rise

Wed Aug 17, 2011 9:59am EDT
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* C$ off high at C$0.9792 to the U.S. dollar, or $1.0212

* Bond prices flat to higher

* Foreigners sell Canadian securities in June

By Ka Yan Ng

TORONTO, Aug 17 (Reuters) - Canada's dollar touched its highest level in more than a week on Wednesday morning, helped by stronger oil prices, but it then backed off, restrained by anxiety over the state of the global economy.

Government bonds were flat to higher, reflecting some disappointment that at a summit meeting on Tuesday France and Germany had stopped short of increasing the size of the euro zone's rescue fund and had rejected for now the idea of a common euro bond. [ID:nL5E7JG0IH]

The currency rose as high as C$0.9776 to the U.S. dollar, or $1.0229, before retreating to near its 200-day moving average around C$0.9810.

The price of oil was up more than 2 percent to above $88 a barrel on Wednesday after industry data released the previous day showed U.S. gasoline stocks fell sharply last week.

North American stocks also opened higher, lending some support to risk assets.   Continued...