CANADA FX DEBT-C$ gets a slight boost as greenback sags

Mon Sep 27, 2010 8:35am EDT
 
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 * C$ higher at 97.68 U.S. cents
 * Bonds firmer across curve
 By Jennifer Kwan
 TORONTO, Sept 27 (Reuters) - Canada's dollar edged higher
against the U.S. currency on Monday, supported by firm oil and
gold prices due in part to a generally weaker greenback.
 Oil prices ticked higher toward $77 a barrel, while gold
prices powered to a record high at $1,300 an ounce on Monday
with investors piling money into the precious metal in part on
the possibility of further quantitative easing by the U.S.
Federal Reserve to stimulate growth. [O/R] [GOL/]
 "The U.S. dollar is still very heavy so that's probably the
main thing that is helping the Canadian dollar," said Shane
Enright, executive director, foreign exchange sales at CIBC
World Markets,
 "The market is concerned about more quantitative easing
from the Fed going forward. That's really what's weighing on
the U.S. dollar for the most part."
 The U.S. central bank stirred markets last week by
expressing greater concern about sluggish U.S. growth and low
levels of inflation in a statement that many took as opening
the door wider to pumping more dollars into the economy. For
details, see [ID:nTRU002490] [ID:nN20109053]
 At 8:15 a.m. (1215 GMT), the Canadian dollar was at
C$1.0238 to the U.S. dollar, or 97.68 U.S. cents, up from
Friday's finish at C$1.0256 to the U.S. dollar, or 97.50 U.S.
cents.
 Also supportive for the currency was higher U.S. stock
index futures, which were firmer on Monday following four weeks
of gains for Wall Street as investors eyed a series of
merger-and-acquisition deals, a sign that companies are seeing
value in the market. [.N]
 Canadian bond prices were slightly higher across the curve,
tracking U.S. Treasuries on Monday. [US/] The two-year Canada
bond was 2 Canadian cents higher to yield 1.461 percent, while
the 10-year bond rose 18 Canadian cents to yield 2.845
percent.
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)