By Commodity News Service Canada
WINNIPEG, Dec. 9 – The Canadian dollar ended stronger relative to the US dollar on Tuesday, seeing an upward correction following Monday’s sharp drop, analysts said.
The Canadian dollar closed at US$0.8741 or US$1=C$1.1440 on Tuesday, which compares with Monday’s North American settlement of US$0.8709 or US$1=C$1.1482.
Spillover support from the gains seen in commodity prices, including crude oil and gold, also underpinned the value of the Canadian currency.
However, ongoing worries about slow economic growth in China and ideas that the US will raise interest rates before Canada were overhanging the market, traders said.
Canadian bonds closed higher on Tuesday, with increased appetite for safe-haven assets, due to unstable outside markets, behind the advances, brokers said.
The two-year bond yielded 1.021% late Tuesday, from 1.025% late Monday. The 10-year bond yielded 1.885%, from 1.896%. Bond yields fall as their prices rise.
