By Commodity News Service Canada
WINNIPEG, June 18 – The Canadian dollar ended only slightly higher after a volatile trading day. The Canadian dollar rose sharply against its US counterpart earlier in the trading session, but gave back most of those gains by the close.
The Canadian dollar closed at US$0.8179 or US$1=C$1.2227 on Thursday, which compares with Wednesday’s North American settlement of US$0.8173 or US$1=C$1.2236.
Support came from Wednesday’s US Federal Reserve announcement, as they said interest rate raises may begin later than first anticipated.
Strength in commodity prices, including crude oil and gold, was also underpinning the Canadian currency.
But, the upside was limited as traders were being cautious ahead of Friday’s release of Canadian inflation and retail sales figures. Ongoing worries about economic problems in Greece were also bearish.
Canadian bonds ended lower, following the US Treasury market’s decline on Thursday, brokers said.
The two-year bond yielded 0.620% Thursday, from 0.608% Wednesday. The 10-year bond yield was at 1.793%, from 1.756% Bond yields fall as their prices rise.
