* Canadian dollar at 1.314 to the greenback
* Bond prices lower across the maturity curve
(Adds analyst comment and details throughout, updates prices)
By Saqib Iqbal Ahmed
Aug 26 (Reuters) - The Canadian dollar shook off early
weakness to rise to a fresh seven-month high against its broadly
weaker U.S. counterpart on Wednesday, as investors' appetite for
riskier assets rose and firmer oil prices provided support.
The Canadian dollar was at 1.314 to the greenback, or
76.10 U.S. cents, stronger than Tuesday's close of 1.3168, or
75.94 U.S. cents.
The Canadian dollar's gains followed a 0.3% rise in the
previous session, and lifted it to an intraday high of 1.3132 to
the greenback, its strongest since Jan. 24.
The U.S. dollar, which started the day stronger, ceded
ground to most major currencies, as investors bid up stocks as
well as risk-sensitive currencies such as the Australian dollar
.
"The trade over the last little while has been to be bullish
risk and to bearish the U.S. dollar. This is just a continuation
of that move," said Bipan Rai, North America head of FX strategy
at CIBC Capital Markets.
Data on Wednesday showed new orders for key U.S.-made
capital goods increased in July, though the pace slowed from
June's robust gain, suggesting the rebound in business
investment would be gradual amid uncertainty about the course of
the COVID-19 pandemic.
No obvious front-runner has emerged among monetary policy
alternatives as the Bank of Canada reviews its options ahead of
next year's inflation target renewal, Bank of Canada senior
deputy governor Carolyn Wilkins, said in opening remarks at a
workshop on Wednesday.
The Canadian dollar also found support as the price of oil,
one of Canada's major exports, held near $46 a barrel on
Wednesday, helped by U.S. producers shutting output in the Gulf
of Mexico ahead of Hurricane Laura.
Canadian government bond prices were lower across the
maturity curve. The two-year yield was at 0.304% up
from 0.292% late on Tuesday, while the benchmark Canadian
10-year yield rose to 0.608% from 0.60%.
(Reporting by Saqib Iqbal Ahmed; Editing by Steve Orlofsky and
Tom Brown)
Our Standards:The Thomson Reuters Trust Principles.
The Link LonkAugust 27, 2020 at 01:38AM
https://www.reuters.com/article/canada-forex/canada-fx-debt-c-rises-to-fresh-7-month-high-as-risk-sentiment-improves-idUSL1N2FS1FQ
CANADA FX DEBT-C$ rises to fresh 7-month high as risk sentiment improves - Reuters
https://news.google.com/search?q=fresh&hl=en-US&gl=US&ceid=US:en
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