By Commodity News Service Canada
WINNIPEG, Nov. 26 – The Canadian dollar closed firmed against its US counterpart on Tuesday, recovering from its sharp drop on Monday and losses seen earlier in the day, analysts said.
The Canadian currency was quoted at US$0.9497 or US$1=C$1.0530 at the close on Tuesday, which compares with Monday’s North American settlement of US$0.9480 or US$=C$1.0548.
Some of the strength in the value of the Canadian dollar was also linked to spillover support from the gains seen in gold prices, traders said.
However, crude oil values moved lower on Tuesday, which was bearish for the Canadian dollar and limited its upside potential.
There was no significant Canadian economic data reported on Tuesday. Traders were looking ahead to Canadian gross domestic product data on Friday.
Canadian bonds were higher Tuesday, reacting to disappointing US economic data, industry watchers said.
The two-year bond yielded 1.096% late Tuesday, from 1.107% late Monday. The 10-year bond yielded 2.514%, from 2.558%. Bond yields fall as their prices rise.
