By Commodity News Service Canada
WINNIPEG, Jan. 14 – The Canadian dollar ended slightly higher relative to the US dollar on Wednesday, seeing an upward correction following recent sharp losses, analysts said.
The Canadian dollar closed at US$0.8372 or US$1=C$1.1945 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8365 or US$1=C$1.1954.
A sharp rebound in oil prices, which were up more than four per cent on the day, was also helping to underpin the Canadian dollar.
However, dovish comments from Bank of Canada officials on Tuesday and a forecast calling for slower global economic growth limited the upside, brokers said.
The World Bank expects the global economy will grow only three per cent in 2015, down from its previous estimate of 3.4 per cent expansion, a report from the bank said.
Canadian bonds closed higher Wednesday, following a rally in global bond markets as investors were flocking to safe-haven assets, traders said.
The two-year bond yielded 0.884% late Wednesday, from 0.917% late Tuesday. The 10-year bond yielded 1.568%, from 1.601%. Bond yields fall as their prices rise.
