CANADA FX DEBT-C$ ends lower as stock market strength fades

Mon Aug 22, 2011 4:53pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ ends lower at C$0.9901 to the U.S. dollar, or $1.01

* Bond prices tip higher as risk sentiment fades (Updates to close)

By Ka Yan Ng

TORONTO, Aug 22 (Reuters) - Canada's dollar finished slightly lower against the U.S. currency on Monday, unwinding early gains as a rebound on stock markets that had pumped it up lost strength.

Bond prices were flat to higher, erasing losses, as the momentum toward risk assets ebbed.

Movements in the equity markets were the currency's main driver due to a lack of economic data or developments in the euro zone debt crisis. Toronto's main stock index, which had gained more than 1 percent early in the session, cut gains and closed only moderately higher. [.TO]

"The market is searching for some direction right now," said Shane Enright, executive director, foreign exchange sales, at CIBC World Markets, noting currency flows were fairly light to start the week.

The Canadian dollar CAD=D4 closed at C$0.9901 to the U.S. dollar, or $1.01, down from Friday's North American finish at C$0.9886 to the U.S. dollar, or $1.0115. The day's range was C$0.9829-C$0.9920.

The two-year bond CA2YT=RR was flat to yield 0.877 percent, while the 10-year bond CA10YT=RR edged up 8 Canadian cents to yield 2.296 percent.   Continued...