Canadian dollar climbs 1.6 pct vs softer greenback

Mon Sep 22, 2008 4:28pm EDT
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* Canadian dollar at 7-week peak against greenback

* Investors await details of U.S. bailout plan

* Bond prices rise as Canada seen as safe haven

By John McCrank

TORONTO, Sept 22 (Reuters) - The Canadian dollar rose to its highest level in seven weeks against a besieged U.S. dollar on Monday, fueled by uncertainty about the $700 billion bailout plan for the stumbling U.S. financial sector and how it weigh on the U.S. balance sheet.

Canadian bond prices rose in a safe-haven bid as investors fled U.S. assets.

The Canadian dollar ended the North American session at C$1.0334 to the U.S. dollar, or 96.77 U.S. cents, up from C$1.0500 to the U.S. dollar, or 95.24 U.S. cents, at Friday's close.

The currency hit its highest level against the greenback since Aug. 4, up 1.6 percent, for its biggest one day rise since Aug. 21.

The greenback weakened as investors waited to see just how much the U.S. government is going to pay for the so-called toxic assets clogging the U.S. financial system.   Continued...