April 2, 2009 / 1:25 PM / 11 years ago

CANADA FX DEBT-C$ rises in tandem with global equities

 TORONTO, April 2 (Reuters) - The Canadian dollar CAD=
gained against the greenback on Thursday as the currency was
supported by buoyant equity markets, a decrease in risk
aversion and firmness in the price of oil.
 The rise comes as recent economic data such as Wednesday's
U.S. figures that showed sturdier U.S. factory activity and
pending sales of existing homes is spurring optimism an
economic recovery may be on its way.
 "There's less risk aversion. We're seeing money getting
pulled out of safe haven U.S. Treasuries and U.S. dollar, and
flowing into equity markets and other currencies such as the
Canadian dollar," said Sal Guatieri, senior economist at BMO
Capital Markets.
 The price of oil CLc1, of which Canada is a key exporter,
rose more than $3 a barrel to above $51 on Thursday, helped by
rising equities and as investors hoped G20 leaders would
deliver concerted measures to restore global growth.
 At 9:09 a.m. (1309 GMT), the Canadian unit was at C$1.2469
to the U.S. dollar, or 80.20 U.S. cents, after touching 80.27
U.S. cents.
 Canadian government bond prices were lower across the
curve, following U.S. Treasury prices down as risk appetite and
stock markets rallied. [ID:nL2975098]
 The Canadian unit eked out a small gain against the
greenback on Wednesday, finishing at a level that belied its
volatile range as risk appetite and technicals pulled the
currency off a two-week low. It closed at C$1.2610 to the U.S.
dollar, or 79.30 U.S. cents.
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)

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