CANADA FX DEBT-C$ edges higher in restrained advance

Wed Aug 17, 2011 5:15pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ ends up at C$0.9797 to the U.S. dollar, or $1.0207

* Bond prices up as equity strength fades, Europe weighs

* TD pushes BoC rate hike forecast to July 2012 from Jan (Adds details)

By Ka Yan Ng

TORONTO, Aug 17 (Reuters) - Canada's dollar edged higher against the U.S. currency on Wednesday, supported by rallying risk assets, although anxiety over the state of the global economy restrained the gain.

The nervousness, however, helped push up government of Canada bond prices.

Early in the session, the currency rose as high as C$0.9776 to the U.S. dollar, or $1.0229, its highest level in more than a week. It then backed down to near its 200-day moving average around C$0.9810.

From around noon onward, the Canadian dollar held in a modest 27-point range and was an underperformer among major currencies.

"The drivers are probably a little bit mixed up, but all in all we've got a little bit stronger oil prices and stronger equities and a general kind of easing in market fears," said Camilla Sutton, chief currency strategist at Scotia Capital.   Continued...