C$ ends stronger as euro
TORONTO: The Canadian dollar strengthened against its US counterpart on Tuesday as investors crept back to riskier investments, pushing global equities and the euro higher despite fears of a Greek default.
The US dollar, boosted on Monday by a flight to safety as investors fled European stocks and the euro, eased back on hopes Europe's top powers will supply fresh support for Greece.
Global stocks and the euro rallied even as investors remained worried European policymakers had no plan to stem the region's debt crisis.
The Canadian dollar ended the North American session at C$0.9854 to the US dollar, or $1.0148 US cents, up from Monday's session close at $0.9921 to the US dollar, or C$1.0080.
It had dipped as low as C$0.9977 to the US dollar, or C$1.0023, in early trade.
On Monday the Canadian dollar broke below parity for the first time in over a month to touch its weakest level since January.
"I'm actually surprised by how much it has rallied today, just in the context that there is still a lot of uncertainty floating around in Europe, the Italian bond auction didn't go that well," said George Davis, chief technical strategist at Royal Bank of Canada.
Copyright Reuters, 2011
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