CANADA FX DEBT-C$ rebounds with oil; bonds mixed

Tue Jun 23, 2009 4:45pm EDT
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* C$ bounces back from five-week low

* Oil rally outweighs disappointing U.S. housing data

* Bonds mixed, market awaits Fed statement (Updates with details)

By Ka Yan Ng

TORONTO, June 23 (Reuters) - The Canadian dollar finished higher against the U.S. currency on Tuesday as rising oil prices and a recovery in equity markets helped it bounce off the five-week low it hit earlier in the day .

The price of oil, a key Canadian export, rallied to above $69 a barrel [ID:nSIN510304], after falling below $67, and the Canadian dollar largely tracked its movement.

Crude's swing higher also lifted Toronto's resource-heavy stock market index, [ID:N2379977] whose direction recently has frequently been a signal of where the Canadian dollar is headed.

The volatility in equity and oil markets through the session created a 120-basis point range for the currency, which moved between C$1.1463 and C$1.1583.

It finished higher at C$1.1500 to the U.S. dollar, or 86.96 U.S. cents, up from C$1.1526 to the U.S. dollar, or 86.76 U.S. cents, at Monday's close.   Continued...