Canadian dollar faces uncertainty around Cyprus debt woe developments
Published Friday, March 22, 2013 1:21PM EDT
TORONTO -- The Canadian dollar was slightly higher Friday as Cypriot lawmakers prepare to vote on a raft of new measures they hope will qualify the country for a bailout package.
The Canadian dollar rose 0.06 of a cent to 97.71 cents US near midday.
The small Mediterranean island has until Monday to etch out a plan to raise 5.8 billion euros to qualify for 10 billion euros in rescue loans from other eurozone countries and the International Monetary Fund.
"With the (federal) budget fireworks out of the way, there is little in terms of event risk from North America today, and the focus will largely be on any potential solution for Cyprus," said George Davis chief technical analyst at RBC Capital Markets in a note.
Finance Minister Jim Flaherty said he plans to eliminate Canada's deficit before 2015 in the federal budget Thursday.
He also unveiled tighter rules for financial institutions that will restrict their ability to insure portfolios of conventional mortgages, those with over 20 per cent householder equity, to only those used in Canada Mortgage and Housing Corp. securitization programs.
In commodities, the April crude contract on the New York Mercantile Exchange rose 63 cents to US$93.06 a barrel.
The May copper contract gained 3.4 cents to US$3.469 a pound and April bullion fell $6.40 to US$1,607.40 an ounce.