October 28, 2009 / 11:56 AM / in 11 years

CANADA FX DEBT-C$ hits 3-week low as appetite for risk fades

 * C$ drops as a low as C$1.0764 against U.S. dollar
 * Slide in oil prices helps fuel drop in C$
 * Domestic bond prices higher across curve
 By Frank Pingue
 TORONTO, Oct 28 (Reuters) - The Canadian dollar fell to its
lowest level in over three weeks on Wednesday along with a drop
in other commodity-linked currencies given a slide in the price
of oil and concern about corporate earnings.
 The price of oil, a key Canadian export whose price often
influences Canada's currency, fell below $79 a barrel given a
weaker equity backdrop and a stronger U.S. dollar. [O/R]
 That shook commodity-related currencies like Canada's as
well as the Australian and New Zealand dollars.
 "It's just more of a risk-off kind of appetite in the
market," said David Bradley, director of foreign exchange
trading at Scotia Capital.
 "There's concern that there might be more weaker earnings
reports coming out, that stocks are going to turn negative and
so all of the risk-off trades are hitting the table at once."
 At 7:35 a.m. (1135 GMT), the Canadian unit was at C$1.0764
to the U.S. dollar, or 92.90 U.S. cents, which marked its
lowest level since Oct. 5. It was also down from C$1.0661 to
the U.S. dollar, or 93.80 U.S. cents, at Tuesday's close.
 Domestic bond prices were sitting higher across the curve
as losses in European equities helped to boost demand for lower
risk government debt.
 (Editing by Chizu Nomiyama)

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