CANADA FX DEBT-C$ gains on Geithner remarks, bonds fall

Wed Mar 25, 2009 4:56pm EDT
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* Canadian dollar up as Geithner's comments hit greenback

* C$ still relatively range-bound

* Bonds fall on failed gilts auction, weak demand in US (Updates to close)

By Ka Yan Ng

TORONTO, March 25 (Reuters) - The Canadian dollar finished higher against the the U.S. currency on Wednesday as the greenback was undercut by comments from U.S. Treasury Secretary Timothy Geithner.

The flight-to-safety appeal of the U.S. dollar was also hurt by better-than-expected U.S. durable goods orders for February and a jump in new home sales. [ID:nLP953349]

But Geithner's comments were the main catalyst that drew the U.S. dollar into a volatile spin as he expressed openness to expanded use of an IMF currency basket, which would include the dollar, euros, sterling and yen.

The U.S. dollar recouped some of its losses after Geithner reiterated that the greenback would remain the world's reserve currency for a long time. [ID:nN25418099]

The Canadian currency finished at C$1.2285 to the U.S. dollar, or 81.40 U.S. cents, up from C$1.2318 to the U.S. dollar, or 81.18 U.S. cents, at Tuesday's close.   Continued...