3 Min Read
* Canadian dollar rises to 93.53 U.S. cents
* Currency disregards flat GDP figure for July
* Bonds gain across the board (Adds details)
By Ka Yan Ng
TORONTO, Sept 30 (Reuters) - The Canadian dollar shot to a one-week high against the U.S. currency on Wednesday as ittracked buoyant oil and gold prices and shrugged off figures that showed the domestic economy did not grow in July.
The price of oil CLc1, a key Canadian export, rose more than 4 percent toward $70 a barrel as the greenback fell against major currencies [O/R] [FRX/], while gold prices climbed to above $1,000 an ounce. [GOL/]
At 2:06 p.m. (1806 GMT), the Canadian dollar was at C$1.0692 to the U.S. dollar, or 93.53 U.S. cents, up from Tuesday's finish of C$1.0855 to the U.S. dollar, or 92.12 U.S. cents.
"Certainly commodity prices are generally helping. We've seen quite a strong rise in oil prices, back towards $70 a barrel and that is typically a good source of support," said Shaun Osborne, chief currency strategist at TD Securities.
A report on Wednesday showed there was no economic growth in Canada in July, disappointing expectations for a 0.5 percent increase in gross domestic product and after the 0.1 percent month-on-month rise in June. [ID:nOTT003730]
The currency took the report in stride, even though the stagnant growth was a downbeat start to the third quarter.
"Most people realize the economy from a growth point of view is still struggling," Osborne said. "There are other positive things to offset the simplistic look at the growth number. We generally think that Canada is in a good fundamental position overall still."
Canadian bonds were higher across the curve, after earlier seesawing on U.S. data.
The U.S. economy contracted at slower pace than previously thought in the second quarter, but a further decline in private payrolls in September was another indication that recovery from recession would be patchy. [ID:nN30198553]
The two-year bond CA2YT=RR was up 1 Canadian cent at C$99.48 to yield 1.278 percent, while the 10-year bond CA10YT=RR gained 14 Canadian cents to C$103.52 to yield 3.32 percent. The 30-year bond CA30YT=RR climbed 15 Canadian cents to C$119.40 to yield 3.853 percent. (Reporting by Ka Yan Ng; editing by Peter Galloway)