By Commodity News Service Canada
WINNIPEG, March 23 – The Canadian dollar was up sharply against the US dollar on Monday, finishing just above the 80 cents US level.
The Canadian currency’s strength was linked to a sell-off in the US dollar index, continuing to react to a more dovish than expected announcement from the US Federal Reserve last week, analysts said.
The Canadian dollar closed at US$0.8001 or US$1=C$1.2499 on Monday, which compares with Friday’s North American settlement of US$0.7950 or US$1=C$1.2579.
A rebound in crude oil values, and advances seen in other commodities, also contributed to the Canadian currency’s advances.
Though, ongoing worries about slow global economic growth, and weakness in Canada’s economy due to recent falling oil prices, limited the upside.
Canadian bonds ended steady to slightly lower on Monday after a day of quiet, choppy activity amid a lack of fresh market moving news, brokers said.
The two-year bond yielded 0.455% Monday, unchanged from late Friday. The 10-year bond yielded 1.306%, from 1.302%. Bond yields rise as their prices fall.
