By Commodity News Service Canada
Winnipeg – June 5/13 – CNS – The Canadian dollar was trading
at a level that was little changed versus the US currency in late
North American activity on Wednesday. Some early downward
pressure on the Canadian unit came from concerns that the US
Federal Reserve will start to ease its stimulus program, market
watchers said.
The early downswing in the value of the Canadian dollar was
also associated with the sell-off experienced in the North
american equity sector.
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The Canadian currency late in the afternoon was quoted at
C$1.0342 (96.69 US cents). This compares with Tuesday’s late
North American quote of C$1.0344,(96.67 US cents).
The losses in the Canadian unit were eased as the day
progressed, and as global crude oil values extended advances,
brokers said. Favourable building permit data in Canada also
provided some strength for the Canadian dollar.
Statistics Canada early Wednesday reported that building
permits were worth C$7 billion in April, an increase of 10.5%
from March. The increase was the fourth consecutive one, StatsCan
said.
Canadian bonds finished on a firmer footing along the yield
curve Wednesday as investors grew worried about the state of the
market was associated with the potential delay in tapering the US
Federal Reserve’s bond-buying program.
Canada’s two-year bond yield was at 1.051% Wednesday, from
1.068% Tuesday. The 10-year bond yielded 2.049%, from 2.082%, its
lowest level in the past eight sessions. Bond yields move
inversely to bond prices.
Canada’s bond market moved largely in step with its US
Treasury counterparts. Canadian bonds shrugged off strong
domestic building permits numbers for April, and focused on
weaker US labor and factor orders figures.
END
