By Commodity News Service Canada
WINNIPEG, March 26 – The Canadian dollar was stronger against the US dollar on Thursday, following the rally seen in crude oil values, analysts said.
The Canadian dollar closed at US$0.8019 or US$1=C$1.2471 on Thursday, which compares with Wednesday’s North American settlement of US$0.7989 or US$1=C$1.2517.
Some support also came from comments from Stephen Poloz, the Bank of Canada’s Governor, as he noted interest rates won’t be cut again unless absolutely necessary.
Though, ongoing speculation that the US Federal Reserve will raise interest rates sometime this year limited the Canadian dollar’s upside.
Canadian bonds ended sharply lower on Thursday, following the weakness seen in US Treasurys. Speculation that interest rates won’t be cut at the next Bank of Canada announcement was also bearish, brokers added.
The two-year bond yielded 0.586% Thursday, from 0.505% late Wednesday. The 10-year bond yielded 1.435%, from 1.340%. Bond yields rise as their prices fall.
