Canada dlr rises on soft greenback, firm commodities

Wed Sep 24, 2008 10:26am EDT
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* Canadian dollar rises 0.5 percent vs greenback

* Bond prices rise with U.S. market on safe haven bid

By John McCrank

TORONTO, Sept 24 (Reuters) - The Canadian dollar rose against the U.S. dollar on Wednesday as the greenback weakened and commodity prices firmed.

Canadian bond prices rose as investors sought less risky assets amid volatility in financial markets.

At 9:59 a.m. (1359 GMT), the Canadian dollar was up 0.5 percent versus the U.S. dollar at C$1.0315, or 96.95 U.S. cents, from C$1.0363, or 96.50 U.S. cents, at Tuesday's close.

Concerns over the U.S. government's $700 billion rescue package for the beleaguered financial sector, which is working its way through Congress, ended a slight U.S. dollar rally from the previous session.

Canada, meanwhile, is still seen as something of a safe haven, given that the stresses in its financial sector are much more limited than they are in the United States, said Adam Cole, head currency strategist at RBC Capital Markets in London.

"So Canada is moving up with the rest of the G10 when the (U.S.) dollar is being sold, but equally, when the (U.S.) dollar is rallying... it's taking Canada with it, so it's almost like a heads I win, tales you lose," he said.   Continued...