Reuters: US Dollar Report: CANADA FX DEBT-C$ steadies ahead of month's end

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CANADA FX DEBT-C$ steadies ahead of month's end Mar 28th 2012, 13:05 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Wed Mar 28, 2012 9:05am EDT * C$ at C$0.9965 vs US$, or $1.0034 * Bond prices mostly lower By Jon Cook TORONTO, March 28 (Reuters) - Canada's resource-heavy currency was little changed against the U.S. dollar on Wednesday as investors processed the latest remarks from U.S. Federal Reserve Chairman Ben Bernanke and positioned their portfolios before the end of the month. Bernanke said on Tuesday it was too soon to declare victory in the U.S. economic recovery, warning against complacency in policy-making as the outlook brightens. His dovish-sounding comments knocked the U.S. dollar as they raised expectations for another round of monetary stimulus. "It was more of a boost for equity markets than anything in the currency world," said Shane Enright, executive director of foreign exchange trading at CIBC World Markets. "Canada is very comfortable between C$0.9850 (US$ 1.0150) and C$1.0050 (99.50 U.S. cents) and we're right in the middle of that right now." At 8:50 a.m. (1250 GMT), the Canadian dollar stood at C$0.9965 versus the U.S. currency, or $1.0034, down slightly from Tuesday's close at C$0.9949 versus the greenback, or $1.0051. Enright said growth-reliant currencies like Canada's have been hurt by recent soft data on Chinese manufacturing and a reduction in the annual economic growth outlook to below 8 percent by the world's top commodities consumer. "You're seeing a little bit of weakening for Canada against the European currencies as commodity currencies fall out of vogue," he said. The quiet session had dealers eyeing U.S. durable goods data on Wednesday that showed orders rose 2.2 percent last month, below expectations of a 3.0 percent increase. A drop in Brent crude oil prices, which fell 1 percent to $124.27 a barrel, also dragged on the Canadian dollar. Across the Atlantic, European debt fears showed signs of resurgence as Spain and the European Commission denied media reports on Tuesday that Brussels had told the Madrid government to take a bailout to refinance the country's troubled banks. Euro zone debt concerns have abated recently with the latest injection of cheap liquidity by the European Central Bank and Greece having avoided a chaotic default. Canadian bond prices were mostly lower, reflecting some risk aversion by investors. Canada's two-year bond dipped 2 Canadian cents to yield 1.222 percent. The 10-year bond fell 10 Canadian cents to yield 2.138 percent. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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