By Commodity News Service Canada
WINNIPEG, April 7 – The Canadian dollar was weaker on Tuesday, as relative strength in the US dollar index weighed on the currency, analysts said.
Traders were shedding riskier assets in favour of the US dollar as some of them believe the US economy is still showing signs of growth.
The Canadian dollar closed at US$0.7997 or US$1=C$1.2504 on Tuesday, which compares with Monday’s North American settlement of US$0.8014 or US$1=C$1.2478.
Ongoing worries about slow economic growth in Canada, due to recent weakness in oil prices, were also bearish.
However, a rebound in crude oil prices late Tuesday helped to limit the downside.
Canadian bonds ended mostly lower, taking direction from the US Treasury market, brokers said.
The two-year bond yielded 0.506% Tuesday, from 0.502% late Monday. The 10-year bond yield was at 1.349%, from 1.347%. Bond yields rise as their prices fall.
