By Commodity News Service Canada
WINNIPEG, Dec. 5 – The Canadian dollar closed firmer against its US counterpart on Thursday, correcting from recent sharp declines, analysts said.
The Canadian currency was quoted at US$0.9398 or US$1=C$1.0641 at the close on Thursday, which compares with Wednesday’s North American settlement of US$0.9365 or US$=C$1.0678.
Positive Canadian building permits data further underpinned the Canadian dollar. Statistics Canada reported that total building permits increased 7.4% in October, which was much better than expectations of 1.0% jump.
However, spillover pressure from the sharp declines seen in gold prices limited the upside, as did the Bank of Canada’s continued dovish stance on the Canadian economy.
Canadian bonds were lower, following the declines seen in the US Treasury market on Thursday, according to industry watchers.
The two-year bond yielded 1.085% late Thursday, from 1.066% late Wednesday. The 10-year bond yielded 2.677%, from 2.649%. Bond yields fall as their prices rise.
