By Commodity News Service Canada
WINNIPEG, Nov. 13 – The Canadian dollar closed higher against its US counterpart on Wednesday, rebounding from recent sharp losses, analysts said.
The Canadian currency was quoted at US$0.9558 or US$1=C$1.0462 at the close on Wednesday, which compares with Tuesday’s North American settlement of US$0.9530 or US$=C$1.0493.
Some of the strength in the Canadian dollar was linked to an announcement from Canada’s Finance Minister Jim Flaherty that said the Canadian government is expecting to post a budget surplus in 2015.
Spillover support from the gains seen in crude oil and gold added to the bullish tone.
However, continued speculation that the US Federal Reserve may back out of stimulus programs soon helped to limit the loonie’s upside.
Canadian bonds were higher on Wednesday, following the gains seen in the US Treasury market, industry officials said.
The two-year bond yielded 1.125% late Wednesday, from 1.140% late Tuesday. The 10-year bond yielded 2.606%, from 2.647%. Bond yields fall as their prices rise.
