December 1, 2009 / 1:38 PM / 11 years ago

CANADA FX DEBT-C$ rises as Dubai fears wane

 * Canadian dollar up at 95.60 U.S. cents
 * Higher oil, metals prices boost currency
 TORONTO, Dec 1 (Reuters) - The Canadian dollar rose against
the U.S. currency on Tuesday morning as the price of key
commodities rose and investor thirst for risk climbed along
with global equities as worries over Dubai's debt problems
 "Risk appetite is in full swing. Less concerns about Dubai
as it tries to restructure it's debts. Global equity markets
are on an upswing," said Sal Guatieri, senior economist at BMO
Capital Markets.
 Worries about Dubai's debt waned on Tuesday, sending global
stocks up sharply higher and weakening lower-yielding assets
such as long-term government bonds and the dollar. [MKTS/GLOB]
 The catalyst was an announcement late on Monday from Dubai
World, center of the debt storm, that provided more clarity
around the debt situation.
 "The U.S. dollar broadly weaker and commodity prices
generally higher and that provides additional support to our
currency," said Guatieri.
 At 8:12 a.m. (1312 GMT), the Canadian dollar was at
C$1.0460 to the U.S. dollar, or 95.60 U.S, up from Monday's
finish at C$1.0556 to the U.S. dollar, or 94.73 U.S. cents.
 The move higher on Tuesday extends gains made in the
previous session after numbers showed Canada officially exited
recession. [ID:nN30349047]
 Canadian bond prices were flat to lower across the curve,
following U.S. Treasury debt prices lower on Tuesday as money
flowed to assets perceived to be riskier. [US/]
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)

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