By Commodity News Service Canada
WINNIPEG, May 20 – The Canadian dollar closed stronger against the US dollar Wednesday, following the rebound seen in oil prices, analysts said..
The Canadian dollar closed at US$0.8199 or US$1=C$1.2196 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8175 or US$1=C$1.2232.
Further support came from the minutes of the latest US Federal Reserve meeting, as they showed an interest rate hike isn’t likely to happen until after June.
Signs that Canada’s economy is improving also underpinned the Canadian dollar, as did positive wholesale sales data. Statistics Canada said wholesale sales rose 0.8 per cent to C$53.9 billion in March, after two consecutive monthly declines.
Though, ongoing worries about slow economic growth in the euro zone and nervousness about another interest rate cut in Canada limited the upside.
Canadian bonds were stronger Wednesday, finding support from the US Federal Reserve’s meeting minutes, according to brokers.
The two-year bond yielded 0.679% Wednesday, from 0.696% late Tuesday. The 10-year bond yield was at 1.801%, from 1.829%. Bond yields fall as their prices rise.
