April 27, 2009 / 11:51 AM / 11 years ago

CANADA FX DEBT-C$ shaken lower by swine flu worries

 * C$ falls as low as 82.04 U.S. cents
 * Bond prices all higher
 By Frank Pingue
 TORONTO, April 27 (Reuters) - Canada's currency fell on
Monday morning as concerns about swine flu raised risk aversion
and sent investors into the U.S. dollar, which is considered a
safer bet in times of uncertainty.
 The threat of a flu pandemic took focus away from the state
of the global economy as more than 100 people were confirmed to
have died from the virus, which has spread across North America
into Canada and as far as New Zealand. [ID:nLR65818]
 The Canadian currency dropped as low as C$1.2189 to the
U.S. dollar, or 82.04 U.S. cents before rebounding slightly.
 By 7:35 a.m. (1135 GMT), the Canadian unit was at C$1.2151
to the U.S. dollar, or 82.30 U.S. cents, down from Friday's
close of C$1.2097 to the U.S. dollar, or 82.67 U.S. cents.
 "For a change it's not the financial markets or the
economic crisis that's weighing on the market, but it's the pig
flu concerns that is weighing on sentiment," said Matthew
Strauss, senior currency strategist at RBC Capital Markets.
 "It's the potential epidemic that's weighing on the market
and consequently (the Canadian dollar) is selling off as one
would expect if risk aversion increases."
 During the weekend Canada confirmed six cases of swine flu,
two in its western province of British Columbia and four in the
Atlantic province of Nova Scotia. [ID:nN26394797]
 Canadian bond prices were higher across the curve alongside
the bigger U.S. Treasury market as investors opted for more
secure assets as global stocks turned lower overnight given the
outbreak of swine flu.
 (Editing by Theodore d'Afflisio)

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