By Commodity News Service Canada
Winnipeg – March 12/13 – CNS – The Canadian dollar was
trading at a firmer level versus the US currency in late North
American activity on Tuesday. Firmness in commodity prices helped
to generate the minor upswing seen in the Canadian dollar, market
watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0249 (97.57 US cents). This compares with Monday’s late North
American quote of C$1.0264 (97.43 US cents).
Global crude oil values had rallied Tuesday with the North
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close in late Tuesday activity.
No economic data of any significance was released in Canada
on Tuesday.
However, weak industrial production numbers in the UK
limited the Canadian dollar’s upside potential, as it had
investors avoiding riskier assets.
Canadian bond issues were generally higher along the yield
curve on Tuesday as market participants flocked back to the
government debt market after a recent selling spree, lured by
lower prices and improved yields, market watchers said.
Canada’s two-year bond yield was at 0.962% late Tuesday,
from 0.981% late Monday. The 10-year bond yielded 1.910%, from
1.944%. Bond yields move inversely to bond prices.
The increased demand for Canadian bonds coincided with
selling had lifted the yield on the benchmark 10-year note as
high as 2.086%.
Demand for safe-haven bonds Tuesday was also attributed with
weak UK industrial production data.
END
