By Commodity News Service Canada
WINNIPEG, June 19 – The Canadian dollar closed higher relative to the US dollar on Thursday, with broad weakness in the US dollar behind the loonie’s strength, analysts said.
The US dollar moved lower against the Canadian dollar after the US Federal Reserve said they aren’t very worried about inflation in the country on Wednesday.
The Canadian dollar closed at US$0.9240 or US$1=C$1.0823 on Thursday, which compares with Wednesday’s North American settlement of US$0.9217 or US$1=C$1.0850.
A sharply rally in gold prices, and strength in other commodities, such as crude oil and copper, were also bullish for the Canadian dollar.
Traders were looking ahead to Friday’s Canadian consumer price and retail sales data.
Canadian bonds closed mixed on Thursday, with some downward pressure coming from the weakness seen in the US Treasury market, brokers said.
The two-year bond yielded 1.082% late Thursday, from 1.103% late Wednesday. The 10-year bond yielded 2.264%, unchanged from Wednesday. Bond yields fall as their prices rise.
