CANADA FX DEBT-C$ skids to lowest level in a week

Mon Apr 20, 2009 8:10am EDT
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 * Economic concerns weigh on investor sentiment
 * Canadian dollar falls to 81.31 U.S. cents
 * Bond prices comfortably higher across curve
 By Frank Pingue
 TORONTO, April 20 (Reuters) - The Canadian dollar fell to
its lowest level in a week on Monday as investors moved into
the perceived safety of the U.S. greenback ahead of a slew of
corporate earnings this week that could be gloomy.
 The decline in the Canadian dollar also came ahead of the
Bank of Canada's next scheduled interest rate announcement on
Tuesday, when it is expected to leave its overnight rate steady
at 0.50 percent [ID:nN16520541]
 At 7:35 a.m. (1135 GMT), the Canadian unit was at C$1.2298
to the U.S. dollar, or 81.31 U.S. cents, its lowest level since
April 13. That was also down from C$1.2150 to the U.S. dollar,
or 82.30 U.S. cents, at Friday's close.
 Another drag on the domestic currency was coming from the
price of oil, a key Canadian commodity and export, which fell
more than 3 percent giving growing caution about the pace any
any economic recovery. [ID:nSYD428032]
 "It's broad-based selling again of your commodity and
cyclical currencies with risk sentiment changing," said Matthew
Strauss, senior currency strategist at RBC Capital Markets.
 "There's concern going into the week as we get financial
reports more from the real economy than just financials and the
results might come in weaker than expected and we could see
continued weakness in the real side of the economy."
 Last week, the quarterly earnings reports picked up steam
in the United States, including better-than-expected profits
from U.S. banks Citigroup (C.N: Quote) and JP Morgan (JPM.N: Quote).
 Canadian bond prices were higher across the curve alongside
the bigger U.S. Treasury market with investors looking for more
secure assets ahead of a slew of earnings this week that could
set a different tone.
 (Editing by Chizu Nomiyama)