By Commodity News Service Canada
WINNIPEG, May 27 – The Canadian dollar closed nearly unchanged against the US dollar on Tuesday, erasing earlier gains. A broadly stronger US dollar helped to weigh on the Canadian currency, analysts said.
The Canadian dollar closed at US$0.9207 or US$1=C$1.0861 on Tuesday, which compares with Monday’s North American settlement of US$0.9208 or US$1=C$1.0860.
Recent positive Canadian economic data and signs that the economy is recovering were supportive for the loonie, but weakening commodity prices were bearish.
Canadian bonds closed higher on Tuesday amid quiet activity as traders awaited new policy announcements from the Bank of Canada and US Federal Reserve, brokers said.
The two-year bond yielded 1.055% late Tuesday, from 1.059% late Monday. The 10-year bond yielded 2.300%, from 2.324%. Bond yields fall as their prices rise.
