Loonie touches one-week higher after ECB loans

Loonie touches one-week higher after ECB loans

TORONTO (Reuters) - The Canadian dollar rose to a loftiest turn in some-more than a week opposite a U.S. banking on Wednesday as European banks borrowed vast amounts from a European Central Bank, assisting to palliate fears about a credit crunch.

Banks took a outrageous 489 billion euros during a European Central Bank's initial ever charity of three-year appropriation on Wednesday and, lifting wish a income might be used to buy Italian and Spanish bonds.

The volume of a take-up demolished marketplace expectations and helped to send European bonds and a euro higher, yet a gains eventually intended off as a direct also highlighted a scale of a pressures European banks are under.

But a pierce did pull a Canadian dollar to a rise of C$1.0209 to a U.S. dollar, or 97.95 U.S. cents, a strongest turn given Dec 12.

"In a brief term, it's some-more or reduction stabilized risk and Canada will benefit," pronounced Darcy Browne, handling director, bound income and currencies during CIBC World Markets.

"Longer term, we still design a euro will substantially trade lower. There's still problems there, it still means Europe is going to have purgation measures, reduce rates relations to North America where a information is looking a small improved vis-a-vis than a European cousin," he added.

"For now, a marketplace is holding it as a certain step."

At 7:53 a.m. (1253 GMT), a Canadian dollar was during C$1.0281 to a U.S. dollar, or 97.27 U.S. cents, adult from Tuesday's North American event finish during C$1.0303 to a U.S. dollar, or 97.06 U.S. cents.

Browne pronounced nearby tenure insurgency for a Canadian dollar was seen during C$1.0225 contra a greenback, while support was seen during C$1.0350.

Markets would subsequent watch for Canadian sell sales for October, as good as sum domestic product for a same month on Friday, for serve direction.

Canadian supervision bond prices edged aloft opposite a curve, with a two-year bond adult 3 Canadian cents to produce 0.873 percent, while a 10-year bond climbed 17 Canadian cents to produce 1.911 percent. The 30-year bond gained 30 Canadian cents to produce 2.453.

(Editing by Theodore d'Afflisio)

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