By Commodity News Service Canada
WINNIPEG, March 16 – The Canadian dollar was up slightly against the US dollar on Monday, seeing a correction following recent sharp declines, analysts said.
The Canadian dollar closed at US$0.7825 or US$1=C$1.2780 on Monday, which compares with Friday’s North American settlement of US$0.7819 or US$1=C$1.2790.
Much of the activity was linked to position squaring ahead of the US Federal Reserve’s interest rate announcement on Wednesday. Expectations that they will raise rates in June continue to overhang the Canadian currency.
Weakness seen in crude oil values, and the resulting negative impact on Canada’s economic growth, were also bearish for the Canadian dollar.
Canadian bonds moved higher on Monday, with the softer crude oil values and strength in US Treasuries behind the advances, brokers said.
The two-year bond yielded 0.538% Monday, from 0.555% late Friday. The 10-year bond yielded 1.448%, from 1.477%. Bond yields rise as their prices fall.
