3:39pm EST
* Canadian dollar edges up to 97.37 U.S. cents
* C$ touches highest level in more than 7 weeks
* Bonds mixed
By Ka Yan Ng
TORONTO, March 9 (Reuters) - The Canadian dollar rallied to
turn slightly higher versus the U.S. dollar on Tuesday
afternoon as the price of oil pared earlier losses and North
American equity markets offered a mixed performance.
There was some cautious movement on stock markets, often a
barometer of risk appetite for the Canadian dollar. [.TO]
[.DJI] [.N]
A steady drumbeat of corporate news lifted specific stocks
on the anniversary of U.S. markets hitting 12-year closing
lows, while in Toronto, the main index was down moderately on
weakness in resource issues.
Still, the commodity-linked currency bloc of the Canadian,
Australian and New Zealand dollars was a strong performer on
Tuesday, even as prices of resources took on a weaker tone. The
price of oil, a key Canadian export, was trading around $81 a
barrel. <CLc1> [O/R]
"The currency landscape is reflecting a mixed bag today.
Typically the market trades based on risk elements but risk
itself is uneven," said Jack Spitz, managing director of
foreign exchange at National Bank Financial.
"And yet, despite that, commodity currencies are leading
the price valuation today."
The Canadian currency is on track for an eighth straight
higher close. It has risen sharply on evidence that the
domestic economy is recovering and on a slightly more hawkish
tone from the Bank of Canada.
It has largely traded in a C$1.0250-C$1.0350 range
recently, though it briefly advanced to its highest level in
more than seven week at C$1.0235 to the U.S. dollar, or 97.70
U.S. cents, early Tuesday afternoon.
At 3:15 p.m. (2015 GMT), the currency was at C$1.0270 to
the U.S. dollar, or 97.37 U.S. cents, up from C$1.0276 to the
U.S. dollar, or 97.31 U.S. cents, at Monday's close.
BONDS MIXED
Bond prices were mixed, following a U.S. three-year note
auction, with the short-end on the rise while the longer-dated
issues remained in negative territory.
The two-year Canadian government bond <CA2YT=RR> was up 4
Canadian cents at C$99.96 to yield 1.520 percent, while the
10-year bond <CA10YT=RR> dipped 2 Canadian cents to C$101.83 to
yield 3.516 percent.
(Reporting by Ka Yan Ng; editing by Rob Wilson)
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