CANADA FX DEBT-C$ rises to one-week high on strong investment data

Mon Nov 18, 2013 9:53am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* C$ at C$1.0417 vs US$, or 95.99 U.S. cents
    * Foreign investors buy C$8.36 bln in Canadian securities
    * Bond yields high across the maturity curve

    By Leah Schnurr
    TORONTO, Nov 18 (Reuters) - The Canadian dollar strengthened
to a one-week high against the greenback on Monday after data
showed foreign demand for Canadian securities surged in
September, and as markets were encouraged by economic and social
reforms announced by China.
    Foreign investment in Canadian securities strengthened,
incuding acquisitions of stocks which rose to the highest level
since September 2009. 
    Non-residents picked up C$8.36 billion ($8.04 billion) worth
of overall securities in September, the highest inflow in five
months and up from the C$2.08 billion investment the previous
    "An overall strong investment climate in Canada will garner
loonie strength and have more people investing in Canada over
the longer term," said Scott Smith, senior market analyst at
Cambridge Mercantile Group in Calgary.
    The loonie hit a session peak of C$1.0414 shortly after the
data was released, the currency's highest level in more than a
week. The Canadian dollar was last at C$1.0417 to the
greenback, or 95.99 U.S. cents, compared to Friday's close of
C$1.0447, or 95.72 U.S. cents.     
    The currency also followed global markets higher as China
unveiled its boldest set of economic and social reforms in
nearly three decades late last week. 
    Analysts said the moves suggested greater liberalization for
the world's second-largest economy.
    "A lot more decisions are going to be made in the future
with free market intentions in mind, so there's going to be a
lot more access to capital and the free markets are going to
determine how resources are allocated," said Smith.
    The loonie should move in a range between C$1.0385 and
C$1.0450 for the session, said Smith.
    Investors will also be watching for comments from Bank of
Canada Senior Deputy Governor Tiff Macklem later in the morning.
    Canadian bond yields were higher across the maturity curve,
with the two-year bond up half a Canadian cent to
yield 1.114 percent, while the benchmark 10-year bond
 rose 4 Canadian cents to yield 2.560 percent.