CANADA FX DEBT-C$ hits 7-month high as oil, equities climb

Wed May 20, 2009 4:51pm EDT
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* C$ finishes higher at 87.69 U.S. cents

* Inflation data, economic outlook lend support

* Greenback retreats amid growing risk appetite

* Bonds mostly flat across the curve (Adds details, quotes)

By Jennifer Kwan

TORONTO, May 20 (Reuters) - The Canadian dollar touched its highest level in seven months on Wednesday, lifted by rising oil and equity prices and as the U.S. dollar tumbled on hope the global economy may be stabilizing, which dented the greenback's appeal as a safe haven.

The combination of factors helped to push the Canadian currency as high as C$1.1363 to the U.S. dollar, or 88.00 U.S. cents, its highest level since Oct. 14.

The broader story was U.S. dollar weakness, said J.P. Blais, vice-president, FX Products, BMO Capital Markets

"Everyone is trying to sell as many U.S. dollars as possible," said Blais. "It's a little bit more of a continuation of looking into riskier trades and for better yields."   Continued...