By Commodity News Service Canada
WINNIPEG, Dec. 31 – The Canadian dollar was fractionally higher relative to the US dollar amid quiet year-end trade on Wednesday. The Bank of Canada posted closing rates early, due to substantially lower trading volumes.
Investors were wary of pushing the currency too far one way or the other amid light activity, and ahead of Thursday’s New Year’s Day holiday closure.
The Canadian dollar closed at US$0.8620 or US$1=C$1.1607 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8615 or US$1=C$1.1601.
The Canadian currency found some support from ideas that recent declines are overdone, and due for an upward correction, analysts said.
Some downward spillover pressure came from weakness in commodity prices, including gold and crude oil. The recent tumble in oil values is still bearish for the loonie, as it will likely have a negative effect on Canadian economic growth.
Canadian bonds were still trading after the Bank of Canada released Canadian dollar closing rates. Overall, bonds are finishing the year of 2014 ahead of forecasts, according to reports.
