CANADA FX DEBT-C$ lifted by oil strength, climbing equities

Tue Mar 31, 2009 9:03am EDT
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 TORONTO, March 31 (Reuters) - The Canadian dollar rose
against the U.S. currency on Tuesday, as the price of oil rose
and equity markets climbed after tumbling the previous
 At 7:29 a.m. (1129 GMT), the unit was at C$1.2542 to the
U.S. dollar, or 79.73 U.S. cents, up from Monday's finish at
C$1.2618 or 79.25 U.S. cents.
 At one point on Tuesday, the Canadian unit touched 1.2503
to the U.S. dollar, or 79.98 U.S. cents.
 "As equity markets rally that tends to lower levels of risk
aversion and it tends to point to a slightly more optimistic
outlook for the markets and the global economy," said George
Davis, chief technical strategist at RBC Capital Markets.
 "The Canadian dollar tends to benefit from that type of
 Davis added strength in the price of oil CLc1, which
climbed to nearly $50 a barrel, also underpinned the currency's
strength [ID:nLV397488]. Canada is a major exporter of oil.
 Canadian government bond prices were mixed across the
curve, with the short end largely flat and the long end lower.
 The rise comes after the threat of bankruptcy at General
Motors GM.N and Chrysler drove the Canadian dollar to almost
a two-week low against the U.S. currency on Monday as the
greenback benefited from a flight to safety, as did bonds.
 (Reporting by Jennifer Kwan; Editing by James Dalgleish)