March 3, 2010 / 2:19 PM / 10 years ago

CANADA FX DEBT-C$ rises for fourth day on Greece moves

 * Canadian dollar rises to 96.85 U.S. cents
 * Bond prices mostly lower
 By Claire Sibonney
 TORONTO, March 3 (Reuters) - The Canadian dollar rose for
the fourth straight session against the U.S. dollar on
Wednesday as steps taken by Greece to tackle its massive debts
boosted investors' appetite for risk, stemming flows into the
safe-haven greenback.
 Greece's cabinet approved a sweeping new austerity program,
the third in as many months, intended to rein in a bulging
budget deficit and secure European financial support.
 "I think generally the U.S. dollar is on weaker footing
today and we're seeing markets turn more towards risk-taking,"
said Camilla Sutton, a currency strategist at Scotia Capital.
 "That's helped push commodities higher and the U.S. dollar
weaker so that's helped the Canadian dollar overall."
 Oil, an important Canadian export, climbed to around $80 a
barrel, while gold jumped to 6-1/2 week highs. [O/R][GOL/]
 Also helping to boost confidence, ADP Employment figures
showed U.S. private employers shed 20,000 jobs in February,
fewer than the 60,000 jobs lost in January. [ID:nOSL013559]
 The data is seen by investors as a precursor to Friday's
closely-watched non-farm payrolls data for February.
 At 9:07 a.m. (1407 GMT), the Canadian dollar was at
C$1.0325 to the U.S. dollar or 96.85, stronger than Tuesday's
finish at C$1.0365 to the U.S. dollar, or 96.48 U.S. cents.
Earlier on Tuesday, the Canadian dollar rose to C$1.0309 or 97
U.S. cents, a six-week high.
 With risk appetite whetted, Canadian bond prices were
mostly lower across the curve.
 The two-year Canadian government bond CA2YT=RR lost 8
Canadian cents to C$100.180 to yield 1.408 percent, while the
10-year bond CA10YT=RR dropped 30 Canadian cents to C$102.550
to yield 3.425 percent.
 (Reporting by Claire Sibonney, editing by Frank McGurty)

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