CANADA FX DEBT-Bank of Canada report pushes C$ higher

Thu Apr 23, 2009 11:37am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Bank of Canada avoids immediate money expansion

* C$ rises to 81.73 U.S. cents after report

* Canada retail sales edge up 0.2 percent in Feb

* Bond prices mostly lower after bank report (Adds details, quotes)

By Jennifer Kwan

TORONTO, April 23 (Reuters) - The Canadian dollar rose sharply against the U.S. dollar on Thursday morning after the Bank of Canada laid out a broad framework for unconventional stimulus measures, but avoided immediate money expansion.

The bank provided an outline for measures including purchasing financial assets in the market, or quantitative easing, and rescuing private-sector credit markets, or credit easing, but it said it needed to be prudent and would not be taking any such steps immediately. [ID:nBAC000299]

The currency shot up to C$1.2235 to the U.S. dollar, or 81.73 U.S. cents, from C$1.2360 to the U.S. dollar, or 80.91 U.S., before the release of the Monetary Policy Report.

On Wednesday, it finished at C$1.2400 to the U.S. dollar, or 80.65 U.S. cents.   Continued...