CANADA FX DEBT-Canadian dollar hits 90 US cents, pares gains

Wed May 27, 2009 8:33am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ breaches 90 U.S. cent level before paring gains

* Currency shrugs off projected biggest ever deficit

* Bonds little changed, focus on U.S. Treasury auction

TORONTO, May 27 (Reuters) - The Canadian dollar touched its highest level against the U.S. currency in more than seven months on Wednesday, supported by positive signs of a recovering global economy and the rising price of oil.

The currency briefly moved above the 90 U.S. cent level before quickly paring gains.

But overall leaning was bullish for the Canadian unit "given the positive sentiment in the market and the view that the global economy is turning the corner," said Sal Guatieri, senior economist at BMO Capital Markets.

"Commodity prices are also moving up, oil in particular, and that's always a plus."

The price of oil, a key Canadian export, rose to a six-month high after OPEC's biggest member Saudi Arabia said the global economy had strengthened enough to cope with oil at $75-$80 a barrel. [ID:nSYD212068]

At 8:15 a.m. (1215 GMT), the Canadian unit was at C$1.1177 to the U.S. dollar, or 89.47 U.S. cents, up from C$1.1178 to the U.S. dollar, or 89.46 U.S. cents, at Tuesday's close when it was spurred by a rise in oil prices and by upbeat U.S. economic data that whetted investor appetite for risk.   Continued...