CANADA FX DEBT-C$ extends free-fall, ends week down 6.8 pct

Fri Oct 24, 2008 4:43pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Canadian dollar tumbles 1.4 pct, 6.8 pct for the week

* Bond prices mixed on talk of new U.S. bailout measures

* Inflation begins to ease in Sept, but reaction muted

By John McCrank

TORONTO, Oct 24 (Reuters) - The Canadian dollar's free-fall against the U.S. dollar extended into a sixth-straight session on Friday, as a feeling of inevitability about a global recession undercut support for the commodity-linked currency, pushing it briefly to its weakest since September 2004.

Domestic bond prices ended mixed, unwinding the majority of an early safe-haven rally as talk of plans by the U.S. Treasury to backstop insurers was met with cheers by investors.

The Canadian dollar ended the North American session down 1.4 percent against the U.S. dollar at C$1.2729, or 78.56 U.S. cents. That compares with C$1.2557 to the U.S. dollar, or 79.64 U.S. cents, at Thursday's close.

During the session, the currency fell as low as C$1.2848 to the U.S. dollar, or 77.83 U.S. cents. It was down 6.8 percent since last Friday, marking its fourth-straight losing week.

"Equity markets are still under pressure, commodity markets are still under pressure, the (U.S.) dollar is still extremely strong across the board and... that's been leaning on the Canadian dollar."   Continued...