Reuters: US Dollar Report: CANADA FX DEBT-With Wall St. shut, C$ hovers near parity

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CANADA FX DEBT-With Wall St. shut, C$ hovers near parity Oct 30th 2012, 21:04 Tweet Share this Email Print Tue Oct 30, 2012 5:04pm EDT * C$ ends slightly firmer at C$0.9993 vs US$, or $1.0007 * Earlier, C$ hit weakest level since Aug. 6 * Approach of month-end could further weaken C$ By Claire Sibonney TORONTO, Oct 30 (Reuters) - The Canadian dollar ended slightly firmer near parity with its U.S. counterpart on Tuesday after the biggest storm to hit the United States in generations shut down Wall Street for a second day and left other markets struggling to set direction. Millions of people were left reeling in the aftermath of monster storm Sandy with New York and a wide swath of the eastern United States trying to deal with flooding and power outages. The death toll climbed to at least 30. As investors sought to grasp the full impact of the storm, world trading of shares and commodities was subdued, providing little guidance for the Canadian dollar. "It's just incredibly quiet with a lot of the market out, equities and bonds in the U.S. closed, it's like a national holiday type of liquidity in the market," said Matt Perrier, director of foreign exchange sales at BMO Capital Markets. "There's not a whole lot going through here. We've been stuck in a very tight range with little flows of note." The currency has traded in a band of less than half a cent since Monday, and Perrier said the current range of between C$0.9975-C$1.0025 should hold heading into the overnight session. At one point it hit C$1.0020 to the greenback, its weakest level since Aug. 6, but then recovered back to the other side of parity by the end of the North American session close. The Canadian dollar ended the day at C$0.9993 to the greenback, or $1.0007, compared with C$1.0008, or $0.9992, at Monday's North American close. Investors expect heightened volatility when U.S. markets reopen on Wednesday with the two-day closure creating pent-up demand. Some traders said they expect corporate and sovereign buying of the greenback ahead of the month-end, with investors unwinding long Canadian dollar positions. Canadian bond markets remained open though volumes were hit by the closure of the U.S. market. Prices drifted slightly lower, with the two-year bond off 3 Canadian cents to yield 1.101 percent, while the benchmark 10-year bond lost 15 Canadian cents to yield 1.813 percent. Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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