By Commodity News Service Canada
WINNIPEG, March 17 – The Canadian dollar firmed relative to the US dollar on Monday as traders were more willing to take on risk after Sunday’s vote in Crimea saw an overwhelming percentage of the population chose to join Russia.
As a result, other countries imposed sanctions on the vote, but traders didn’t react greatly to that news, as the US and EU plan to only impose targeted sanctions, market watchers said.
The Canadian dollar closed at US$0.9047 US$1=C$1.1053 on Monday, which compares with Friday’s North American settlement of US$0.9013 or US$=C$1.1095.
The Canadian dollar’s upside was limited, however, by spillover pressure from the weakness seen in commodities, including crude oil and gold.
Canadian bonds were lower, following the US Treasury market on Monday, industry officials said.
The two-year bond yielded 1.031% late Monday, from
1.009% late Friday. The 10-year bond yielded 2.437%, from
2.392%. Bond yields fall as their prices rise.
