By Commodity News Service Canada
WINNIPEG, March 25 – The Canadian dollar closed stronger against the US dollar on Tuesday, as disappointing US housing data provided support, analysts said.
Sales of new homes in the US dropped by 3.3 in February, likely due to the unusually cold weather seen this winter, reports show.
The Canadian dollar closed at US$0.8961 or US$1=C$1.1159 on Tuesday, which compares with Monday’s North American settlement of US$0.8933 or US$1=C$1.1195.
Strength in commodity prices was also supportive, though last week’s dovish Bank of Canada announcement continued to overhang the Canadian dollar.
Canadian bonds were mixed, with further the longer-dated bonds moving lower alongside the US Treasury market, industry officials said.
The two-year bond yielded 1.069% late Tuesday, from 1.075% late Monday. The 10-year bond yielded 2.472%, from
2.461%. Bond yields fall as their prices rise.
