CANADA FX DEBT-C$ touches 7-week high after takeover approvals
* C$ closes at $0.9870 vs US$, or $1.0132 * C$'s high for the day was C$0.9865 vs US$, or $1.0137 * Bond prices climb across the curve By Solarina Ho TORONTO, Dec 10 (Reuters) - The Canadian dollar broke through recent trading ranges to hit a seven-week high against the greenback on Monday after the Canadian government gave the green light to two controversial takeovers in the energy sector. Canada approved CNOOC Ltd of China's $15.1 billion bid for Nexen Inc and the $5.3 billion takeover of Progress Energy Resources Corp by Malaysia's Petronas , but it also announced new rules that will curb investments by state-owned enterprises. "If we compare (the Canadian dollar) to the value last week, the approval on Friday of the two big takeovers - that has been helping the Canadian dollar gain some strength," said Charles St-Arnaud, economist and currency strategist at Nomura Securities in New York. "But in the medium to long term, the higher hurdle for takeovers by state-owned enterprises may at the margins be negative". Market sources noted that by drawing a line in the sand against future acquisitions in the Alberta oil sands by foreign state-owned enterprises, the Canadian government could be seen by some as raising hurdles for takeovers in general. "I think any flow associated with that transaction is CAD positive but I think it is right to not go overboard on the forward-looking implications beyond that because of that very strong qualification that went with it," said Adam Cole, global head of FX strategy at RBC Capital Markets in London. The Canadian dollar finished Monday's session at C$0.9870 versus the U.S. dollar, or $1.0132, compared with Friday's North American session close of C$0.9910, or $1.0091. Earlier on Monday, the currency hit C$0.9865, or $1.0137, its strongest level since Oct. 19. Cole said the next significant level of resistance for the Canadian dollar was around C$0.9820, or $1.0183. The Canadian dollar's performance was mixed against other major currencies. At one point, it touched its strongest level against the euro in almost a month and against sterling in nearly seven weeks before weakening off. Canadian bond prices climbed across the curve, tracking U.S. Treasuries on concerns over protracted budget negotiations in Washington, political rumblings in Italy and expectations for further monetary policy easing by the U.S. Federal Reserve. The two-year bond added 1.5 Canadian cents to yield 1.059 percent, and the benchmark 10-year bond rose 7 Canadian cents to yield 1.702 percent.
- Alabama man gets $1,000 in police settlement, his lawyers get $459,000
- Probe: Athletes took fake classes at University of North Carolina
- Canada's Harper pledges tougher security laws after attack |
- Man arrested after jumping White House fence, causing lockdown
- Some U.S. hospitals weigh withholding care to Ebola patients