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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (662763)	11/26/2004 9:58:13 PM
From: puborectalis	Respond to of 769670

Canada dollar ends above 85 U.S. cents, bonds slip Fri Nov 26, 2004 05:36 PM ET By Cameron French TORONTO, Nov 26 (Reuters) - The Canadian dollar closed above 85 U.S. cents for the first time in nearly 13 years on Friday as the struggling U.S. greenback slid further against the world's major currencies. Domestic bond prices gave back some of Thursday's gains, although flows were light with U.S. markets closing early. The currency finished at C$1.1759, to the U.S. dollar, or 85.04 U.S. cents, up from C$1.1776 to the U.S. dollar, or 84.92 U.S. cents, at Thursday's close. "The general trend that we've seen throughout the day has been based on the overall performance of the U.S. dollar," said George Davis, chief technical strategist at RBC Capital Markets. With U.S. markets closed on Thursday for Thanksgiving, Friday currency flows suffered from a general lack of attendance. Comments -- later retracted -- that China was cutting back on its accumulation of U.S. dollar assets sent the greenback sharply lower overnight, allowing the Canadian dollar to drive as high as C$1.1716 to the U.S. dollar, or 85.35 U.S. cents, a level last hit in January 1992. The U.S. currency rebounded from that low, but then weakened again as Canadian dollar buyers stepped in just past C$1.18 to the U.S. dollar, or 84.74 U.S. cents. "We ran into a wall of offers there, mostly from momentum fund accounts, looking to do the same old thing -- sell the U.S. dollar into rallies," Davis said. "It's proven to be an effective trading strategy for the past month or so, and people keep trying to do that until they're proven otherwise." The U.S. dollar has fallen sharply in recent months due to worries over the U.S. budget and trade deficits. The Canadian currency's corresponding climb has raised fears that more expensive domestic exports will undermine economic growth. On Friday, Finance Minister Ralph Goodale said in parliament that the soaring Canadian dollar could be a drag on future economic growth, but this had little effect on the currency. Despite the concerns, Canadian primary dealers still expect the Bank of Canada will raise interest rates on Dec. 7, according to a Reuters survey taken on Thursday. This would boost the yield on Canadian investments and could spur more buying of Canadian dollars.