By Commodity News Service Canada
WINNIPEG, April 1 – The Canadian dollar closed stronger against its US counterpart on Tuesday, lifted by positive Canadian economic news, analysts said.
The Royal Bank of Canada’s Canadian Manufacturing Purchasing Managers Index rose to 53.3 in March, from 52.9 in February.
The Canadian dollar closed at US$0.9065 or US$1=C$1.1032 on Tuesday, which compares with Monday’s North American settlement of US$0.9046 or US$1=C$1.1055.
Further support came from US Federal Reserve chairwoman Janet Yellen’s comments on Monday that the US employment industry will need interest rates to stay low for “some time”, traders said.
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However, weakness seen in crude oil and gold prices spilled over to weigh on the Canadian dollar, limiting the upside.
Traders were looking ahead to Friday, when key employment data for both Canada and the US will be released. The Canadian dollar is expected to remain in a fairly narrow range until then, brokers said.
Canadian bonds were lower on Tuesday, undermined by positive economic news out of China and Europe, participants said.
The two-year bond yielded 1.076% late Tuesday, from 1.067% late Monday. The 10-year bond yielded 2.496%, from
2.459%. Bond yields fall as their prices rise.
