July 15, 2009 / 12:11 PM / in 8 years

CANADA FX DEBT-C$ hits highest level in more than 3 weeks

 * C$ rallies to C$1.1265 to the U.S. dollar
 * Data and commodity prices help fuel gains
 * Bond prices lower as stocks set to rally
 By Frank Pingue
 TORONTO, July 15 (Reuters) - Canada's currency rallied to
its highest level in over three weeks versus the U.S. dollar on
Wednesday as a rise in oil and commodity prices combined with
recent upbeat domestic data to boost risk appetite.
 That combination raised the Canadian dollar to C$1.1265 to
the U.S. dollar, or 88.77 U.S. cents, marking its highest level
since June 19 and lifting it further from the seven-week low it
tumbled to last week.
 "We generally think the Canadian dollar has turned around
so it's looking very much as if the June correction higher in
(the U.S. dollar versus the Canada dollar) has run its course,"
said Shaun Osborne, chief currency strategist at TD
 "The generally favorable data that we've had out in Canada,
particularly over the last few days, seems to be supporting
sentiment for the currency again."
 Earlier this week a pair of surveys from the Bank of Canada
showed businesses are more hopeful about their economic future
while lenders are tightening credit conditions at a lesser rate
than in previous quarters. The reports reinforce other data
suggesting the recession may have hit bottom. [ID:nN13381629]
 Other factors supporting the domestic currency were a rise
in prices for key Canadian exports like oil and gold. Improved
expectations for an economic recovery boosted oil prices, while
a weaker U.S. dollar lent a bid to gold.
 At 7:45 a.m. (1145 GMT), the Canadian unit was at C$1.1275
to the U.S. dollar, or 88.69 U.S. cents, up from C$1.1360 to
the U.S. dollar, or 88.03 U.S. cents, at Tuesday's close.
 Part of the Canadian dollar's strength also was attributed
to a weaker U.S. dollar, which fell as a more upbeat tone to
equity markets remained after strong earnings from both Goldman
Sachs GS.N and Intel INTC.O on Tuesday.
 However,  the upbeat tone in equity markets did little to
help domestic bond prices. They were lower across the curve
ahead of an expected higher open for North American equities.
 (Editing by Theodore d'Afflisio)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below