By Commodity News Service Canada
WINNIPEG, September 24 – The Canadian dollar ended firmer on Wednesday, after dropping down to 90 cents US earlier in the day.
Short covering at the lows of the day accounted for some of the upward price movement, analysts said.
The Canadian dollar closed at US$0.9044 or US$1=C$1.1057 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9034 or US$1=C$1.1069.
The evening of positions ahead of the end of the quarter was also responsible for some of the Canadian dollar’s firmness, traders noted.
Spillover support came from the strength in crude oil and copper, though weakness in gold prices was bearish.
A recent dovish speech from the Bank of Canada and Tuesday’s disappointing Canadian retail sales continued to overhang the loonie as well.
Canadian bonds ended lower, following the weakness in the US Treasury market on Wednesday, participants said.
The two-year bond yielded 1.145% late Wednesday, from 1.123% late Tuesday. The 10-year bond yielded 2.202%, from 2.172%. Bond yields fall as their prices rise.
