By Commodity News Service Canada
WINNIPEG, July 16 – The Canadian dollar firmed against the US dollar on Wednesday, breaking back above the 93 cents US mark.
The Canadian dollar closed at US$0.9306 or US$1=C$1.0746 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9295 or US$1=C$1.0758.
The Bank of Canada released its latest policy statement Wednesday morning, but left rates unchanged as expected, therefore the announcement had little impact on the Canadian currency, analysts said.
Some spillover support for the Canadian dollar came from the sharp gains in crude oil, and firmness in gold values, traders said.
Canadian bonds closed higher Wednesday, reacting to the Bank of Canada’s policy announcement that saw interest rates remain unchanged, brokers said.
The two-year bond yielded 1.090% late Wednesday, from 1.099% late Tuesday. The 10-year bond yielded 2.200%, from 2.215%. Bond yields fall as their prices rise.
