October 14, 2009 / 11:44 AM / 11 years ago

CANADA FX DEBT-C$ hits highest level in over 14 months

  * C$ rises as high as C$1.0252 to the U.S. dollar
 * Move driven by upbeat U.S. corporate results
 * Bond prices stuck lower across the curve
 By Frank Pingue
 TORONTO, Oct 14 (Reuters) - The Canadian dollar rose early on Wednesday to its highest level in over 14 months as upbeat U.S. corporate results sparked renewed optimism for a global recovery and fueled appetite for riskier assets.
 The currency’s rise was compounded by a lower U.S. dollar as earnings from JPMorgan Chase & Co (JPM.N) early Wednesday and from Intel Corp (INTC.O) late Tuesday both topped expectations and tarnished the greenback’s safe have appeal.
 That helped the Canadian currency shoot as high as C$1.0252 to the U.S. dollar, or 97.54 U.S. cents, which was its highest level since Aug. 1, 2008.
 “The better background for U.S. corporate results is reflective of a better macro background and that is positive for currencies that are most plugged into the economic cycle and Canada leads the charge in the respect,” said Adam Cole, global head of FX strategy at RBC Capital Markets in London.
 “So the strength of equities, the strength of the Canadian dollar and the strength of commodities all reflect the better risk and growth background that markets are discounting.”
 At 7:30 a.m. (1130 GMT), the Canadian unit CAD=D3 was at C$1.0285 to the U.S. dollar, or 97.23 U.S. cents, up from from C$1.0365 to the U.S. dollar, or 96.48 U.S. cents, at Tuesday’s close.
 Domestic bond prices were stuck lower across the curve, tracking the move in the bigger U.S. Treasury market, as the upbeat corporate results boosted stock futures and sapped demand for more secure assets like government debt.
 (Editing by Jeffrey Benkoe)                                                  

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