March 30, 2009 / 11:46 AM / in 9 years

CANADA FX DEBT-C$ weaker as U.S. auto woes hit

 TORONTO, March 30 (Reuters) - The Canadian dollar weakened
against the U.S. currency on Monday as renewed trouble in the
U.S. auto sector diminished investors' risk appetite.
 World stocks slumped and government bonds rose on Monday on
concerns General Motors Corp GM.N and Chrysler were edging
closer to bankruptcy as their turnaround plans were rejected.
Concerns about the banking sector in Europe also hit sentiment.
For more see [ID:nLU230709] and [ID:nN29520526].
 At 7:27 a.m. (1127 GMT) the Canadian dollar was at C$1.2487
to the U.S. dollar, or 80.08 U.S. cents, down from Friday's
finish at C$1.2374 to the U.S. dollar, or 80.81 U.S. cents.
 At one point on Monday, the unit was at C$1.2537 to the
U.S. dollar, or 79.76 U.S. cents.
 The U.S. dollar is benefiting from "flight-to-safety
buying," which is the main factor pushing down the Canadian
unit, said Sal Guatieri, senior economist at BMO Capital
 "There's fears of GM and Chrysler's possible bankruptcy,"
he said.
 Guatieri added the stronger U.S. dollar was also helping to
pressure the price of oil, which fell below $51 a barrel on
Monday amid the slump in global equity markets. [ID:nSYD421224]
Canada is a major exporter of oil.
 Government bond prices were mostly higher across the curve,
following U.S. Treasury debt prices higher in Europe as stock
markets tumbled amid concerns about the health of the U.S. auto
sector. [ID:nLU313818]
 (Reporting by Jennifer Kwan; Editing by James Dalgleish)

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