CANADA FX DEBT-Firm oil, equities underpin C$ turn higher

Fri Jun 25, 2010 4:51pm EDT
 
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* C$ rises to 96.53 U.S. cents

* Bond prices tick higher across curve (Updates to close)

TORONTO, June 25 (Reuters) - Canada's dollar climbed against the U.S. currency on Friday, breaking a four-session fall, as firm oil prices and equity markets lent support.

Toronto's main stock index pushed higher and the price of oil, a key Canadian commodity, was up more than 3 percent, nearing $79 a barrel.

The Canadian dollar ended at C$1.0359 to the U.S. dollar, or 96.53 U.S. cents, up from Thursday's finish at C$1.0437 to the U.S. dollar, or 95.81 U.S. cents. It had hit a two-week low on Thursday, but Friday's strength cut the week's decline to about 1.5 percent.

"It's had a turnaround from the move we saw yesterday. In the absence of any real fundamental data, the Canadian dollar is content to just follow stocks," said Brendan McGrath, manager of business solutions at Custom House, in Victoria, British Columbia.

Market players were expected to monitor developments at two summits in Ontario this week, with leaders of the Group of Eight and Group of 20 nations coming together to discuss priorities for a world emerging from recession. [ID:nN18322198]

A deal between U.S. lawmakers on regulatory reform on Friday put banking rules high on a crowded G20 agenda. U.S. President Barack Obama prodded his G20 colleagues to make good on their promises to clamp down on the risky behavior by banks blamed for unleashing the worst financial crisis in 80 years.

"A lot of traders are kind of reluctant to really be doing too much before the G20. There's rarely a lot of news that comes out of this that affects currencies but clearly this time could be different," said McGrath, citing banking regulations and concerns about Europe as key issues that will be discussed at the summits.   Continued...