February 17, 2009 / 1:32 PM / in 11 years

CANADA FX DEBT-Risk aversion pushes C$ near 1-mth low

 TORONTO, Feb 17 (Reuters) - The Canadian dollar fell to its
lowest level in almost a month against the U.S. dollar on
Tuesday, hurt by rising risk-aversion as fears mounted of a
protracted global economic downturn.
 There was little homegrown news to drive the Canadian
dollar early on Tuesday and it was being hit by wariness about
the health of Europe's banks, the falling price of crude oil,
and uncertainty ahead of a deadline for car giants to submit
turnaround plans.
 At 8:15 a.m. (1315 GMT), the Canadian dollar was at
C$1.2627 to the U.S. dollar, or 79.20 U.S. cents, down sharply
from C$1.2341 to the U.S. dollar, or 81.03 U.S. cents, at
Friday's close.
 The Canadian currency at one point traded at C$1.2655, or
79.02 U.S. cents, its weakest level since January 22.
 Some of Canada's markets were closed on Monday for
provincial holidays, while the Bank of Canada put the
currency's close at C$1.2438 to the U.S. dollar, or 80.40 U.S.
cents on Monday.
 "We've seen another batch of dreadful data from around the
globe in recent days and, generally, markets are reeling again
on concern that the downturn continues to deepen at an
unbelievable pace," said Doug Porter, deputy chief economist at
BMO Capital Markets.
 "We're seeing the U.S. dollar strengthening almost across
the board. This is not just a Canadian dollar story by any
 The greenback, which is currently perceived as a safe-haven
currency, rose broadly while the euro fell to 10-week lows,
pressed by concerns over a recession in eastern Europe and the
knock-on effect on European banks.
 (Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson)

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