CANADA FX DEBT-C$ rises as risk appetite returns

Fri Apr 24, 2009 9:46am EDT
 
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* C$ rises to 82.41 U.S. cents

* Bond prices lower as equities climb

By Jennifer Kwan

TORONTO, April 24 (Reuters) - The Canadian dollar rose on Friday as climbing global equities underpinned a return of risk appetite, adding to momentum seen on Thursday after the Bank of Canada said saw no immediate need for money expansion.

World stocks .MIWDOOOOOPUS rose on Friday, helped in part by better-than-foreseen results from Ford Motor Co F.N and a rosy corporate sentiment survey from Germany. [MKTS/GLOB]

"It might be a good day for the currency given that risk aversion has come back a little bit," said Sal Guatieri, senior economist at BMO Capital Markets.

Guatieri added that the currency also gained momentum following a report on Thursday by the Bank of Canada that surprised markets with a go-slow approach to injecting additional stimulus through unconventional measures.

The bank provided an outline on how it might go about boosting the money supply by purchasing financial assets, also known as quantitative easing, and credit easing, which involves help for targeted private-sector credit markets.

It said it needed to be prudent and would not be taking any such steps immediately, signaling it would not go down that road before June, if at all. [ID:nN23255456] [ID:nN23361342]   Continued...