By Commodity News Service Canada
WINNIPEG, June 9 – The Canadian dollar closed stronger against the US dollar Monday, following crude oil values as they rose in reaction to signs of improving demand and slowing production out of the US, analysts said.
The Canadian dollar closed at US$0.8100 or US$1=C$1.2346 on Tuesday, which compares with Monday’s North American settlement of US$0.8066 or US$1=C$1.2398.
Technical based buying and recent positive Canadian jobs data were also providing some support for the Canadian currency.
Though, ongoing expectations that the US Federal Reserve will raise interest rates later this year continued to overhang the market.
There was no significant Canadian economic data released on Tuesday. New housing and international investment data will likely provide some direction for the currency on Thursday, brokers added.
Canadian bonds were lower on Tuesday, following weakness in outside markets, brokers said.
The two-year bond yielded 0.661% Tuesday, from 0.629% late Monday. The 10-year bond yield was at 1.879%, from 1.814% Bond yields fall as their prices rise.
