By Commodity News Service Canada
WINNIPEG, June 18 – The Canadian dollar ended firmer on Wednesday relative to the US dollar, after the no surprises came out of the US Federal Reserve’s meeting this week, analysts said.
The US Federal Reserve decided to lower their monthly bond purchases by another US$10 billion a month, and lowered their forecast for economic growth, as expected.
The Canadian dollar closed at US$0.9217 or US$1=C$1.0850 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9205 or US$1=C$1.0864.
Recent strength in crude oil prices, due to ongoing worries about political unrest in Iraq, was also supportive for the Canadian dollar.
There was no significant Canadian economic data released Wednesday. Traders were looking ahead to Friday’s Canadian consumer price and retail sales data.
Canadian bonds closed higher on Wednesday, following similar action seen in the US Treasury market, industry watchers said.
The two-year bond yielded 1.098% late Wednesday, from 1.113% late Tuesday. The 10-year bond yielded 2.268%, from 2.313%. Bond yields fall as their prices rise.
