By Commodity News Service Canada
WINNIPEG, June 10 – The Canadian dollar closed sharply higher against the US dollar Wednesday, following gains in crude oil.
The Canadian dollar closed at US$0.8155 or US$1=C$1.2262 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8100 or US$1=C$1.2346.
Traders were also more interested in buying commodity-based currencies, including the loonie, and selling the US dollar, after Japanese officials said the country’s currency has bottomed against the US dollar, analysts said.
But, recent strong economic data is pointing to an interest rate increase in the US later this year, which is overhanging the Canadian dollar.
There was no significant Canadian economic data released on Wednesday. New housing and international investment data will likely provide some direction for the currency on Thursday, brokers added.
Canadian bonds were lower again Wednesday, following weakness in government bond markets in Germany, the United Kingdom and United States, traders said.
The two-year bond yielded 0.684% Wednesday, from 0.664% late Tuesday. The 10-year bond yield was at 1.907%, from 1.882% Bond yields fall as their prices rise.
