CANADA FX DEBT-C$ rises to one-week high on strong investment data
* C$ at C$1.0432 vs US$, or 95.86 U.S. cents * Foreign investors buy C$8.36 bln of Canadian securities * Bond yields higher across the maturity curve By Leah Schnurr TORONTO, Nov 18 (Reuters) - The Canadian dollar touched 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 in September with purchases of stocks rising to the highest level since September 2009. Nonresidents picked up C$8.36 billion ($8.04 billion) worth of securities overall in September, the highest inflow in five months and up from a C$2.08 billion investment the previous month. "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's session peak was C$1.0414, its highest level in more than a week, but it trimmed some of those gains to end the North American session at C$1.0432 to the greenback, or 95.86 U.S. cents, stronger than Friday's close of C$1.0447, or 95.72 U.S. cents. The currency also got a boost from increased risk appetite after China unveiled its boldest set of economic and social reforms in nearly three decades late last week. Analysts said the moves suggest greater liberalization for the world's second-largest economy. "It just sets the stage for a more positive economic growth outlook for China," said Gareth Sylvester, director at Klarity FX in San Francisco. The loonie will likely trade in a range between C$1.0390 and C$1.05 this week, Sylvester said. The Canadian currency had little reaction to comments from Bank of Canada Senior Deputy Governor Tiff Macklem that the financial reform agenda pursued by the Group of 20 economies has reduced the risk of financial collapse. Macklem did not provide any guidance on the Bank of Canada's monetary policy or on the outlook for the economy. Canadian bond yields were higher across the maturity curve, with the two-year bond up 2-1/2 Canadian cents to yield 1.104 percent, while the benchmark 10-year bond rose 35 Canadian cents to yield 2.521 percent.
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