By Commodity News Service Canada
WINNIPEG, July 21 – The Canadian dollar moved higher on Tuesday, climbing back above the key 77 cents US mark as Monday’s losses were seen as overdone, analysts said.
The Canadian dollar closed at US$0.7723 or US$1=C$1.2948 on Tuesday, which compares with Monday’s North American settlement of US$0.7694 or US$1=C$1.2997.
The advances were also linked to strength in crude oil values, one of Canada’s biggest exports. Improving demand for the commodity underpinned prices.
However, weakness in gold and ongoing worries about economic problems in Canada after the Bank of Canada’s interest rate cut last week limited the upside.
There was no significant Canadian economic data released on Tuesday. Traders were looking ahead to Thursday’s domestic retail sales report.
Canadian bonds were stronger on Tuesday, taking direction from the US Treasury market, brokers said.
The two-year bond yielded 0.429% on Tuesday, from 0.432% Monday. The ten-year bond yield was at 1.570%, from 1.583%. Bond yields fall as their prices rise.
