By Commodity News Service Canada
WINNIPEG, May 13 – The Canadian dollar eased relative to its US counterpart on Tuesday, undermined by broad strength in the value of the US dollar, analysts said.
The Canadian dollar closed at US$0.9166 or US$1=C$1.0910 on Tuesday, which compares with Monday’s North American settlement of US$0.9177 or US$1=C$1.0897.
The loonie was also reacting to disappointing US retail sales data. US retail sales were up 0.1 per cent in April, following a 1.5 per cent increase in March.
Weakness in copper and gold prices was bearish for the Canadian dollar, though strength in crude oil provided some support for the currency.
Canadian bonds closed higher, following the US Treasury market after the release of disappointing US retail sales data, traders said.
The two-year bond yielded 1.063% late Tuesday, from 1.072% late Monday. The 10-year bond yielded 2.358%, from 2.400%. Bond yields fall as their prices rise.
