By Commodity News Service Canada
WINNIPEG, Dec. 18 – The Canadian dollar strengthened relative to the US dollar on Thursday, seeing a corrective bounce after recent sharp losses, analysts said.
The Canadian dollar closed at US$0.8623 or US$1=C$1.1597 on Thursday, which compares with Wednesday’s North American settlement of US$0.8592 or US$1=C$1.1639.
Short covering ahead of the holidays was also supportive, though the crude oil market turned lower on Thursday, which was bearish.
Economists are worried that tumbling oil prices will have a negative effect on Canada’s economy, as oil is one of the country’s largest export products.
Canadian bonds closed lower on Thursday, following the weakness in the US Treasury market, participants said.
The two-year bond yielded 1.019% late Thursday, from 1.001% late Wednesday. The 10-year bond yielded 1.866%, from 1.807%. Bond yields fall as their prices rise.
