CANADA FX DEBT-C$ falls on U.S. jobs data but bonds gain
* C$ hits 85.92 US cents, lowest level in over 5 weeks
* Bonds rise after U.S. data
* U.S. 1st qtr GDP contracts less, jobless claims up (Adds details)
By Ka Yan Ng
TORONTO, June 25 (Reuters) - The Canadian dollar fell versus the U.S. dollar on Thursday morning, pulled lower by an unexpected rise in U.S. jobless claims, but firmer oil prices cushioned the fall.
At one point, the Canadian currency fell as low as C$1.1639 to the U.S. dollar, or 85.92 U.S. cents, its lowest level since May 18, before paring losses as the price of oil, a key Canadian export, rose more than 1 percent above $69 a barrel.
U.S. data showed the economy shrank slightly less in early 2009 than previously thought, but initial claims for state unemployment insurance for the week increased by 15,000 to a greater-than-expected seasonally adjusted 627,000. [ID:nN25258161] [ID:nN25258015]
"The key release was the claims data, which didn't show as great an improvement as expected," said Paul Ferley, assistant chief economist at Royal Bank of Canada.
"The Canadian dollar is showing a little bit of strength from first thing this morning despite the claims number, but we're seeing some recovery in oil prices." Continued...