CANADA FX DEBT-C$ rallies to close above 80 U.S. cents

Tue Feb 24, 2009 4:56pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Rises in equities and oil prices help fuel C$ gain

* C$ hits seven-week high versus Japanese yen

* Bond prices fall in shadow of rising stock markets (Recasts with comments and closing numbers)

By Frank Pingue

TORONTO, Feb 24 (Reuters) - Canada's dollar bounced off an early low to close higher versus the greenback on Tuesday, helped by a rebound in North American equity markets and higher prices for oil, a key Canadian export.

The Canadian currency also shot to a seven-week high versus the Japanese currency as the yen's safe-haven bid was undermined by Japan's sharp economic downturn.

"Pretty much for the past year the Canadian dollar has been closely tied to the fortunes of global equity markets and we had a little bit of an example of that again today," said Doug Porter, deputy chief economist at BMO Capital Markets. "And it certainly didn't hurt that oil had a nice bounce today."

The Canadian dollar closed at C$1.2433 to the U.S. dollar, or 80.43 U.S. cents, up from C$1.2513 to the U.S. dollar, or 79.92 U.S. cents, at Monday's close.

The currency shot as high as C$1.2396 to the U.S. dollar, or 80.67 U.S. cents, during the session, which put it 1.2 percent above its session low, early in the day, of C$1.2540 to the U.S. dollar, or 79.74 U.S. cents.   Continued...