By Commodity News Service Canada
WINNIPEG, March 17 – The Canadian dollar was holding relatively steady against the US dollar on Tuesday, as traders prepared for the US Federal Reserve’s next interest rate announcement on Wednesday, analysts said.
The Canadian dollar closed at US$0.7827 or US$1=C$1.2776 on Tuesday, which compares with Monday’s North American settlement of US$0.7825 or US$1=C$1.2780.
Some support came from ideas that the recent strength in the US dollar may cause the US Federal Reserve to take a more cautious stance on raising interest rates.
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On the other side, declines in crude oil values and ongoing worries about the negative impact they could have on Canada’s economy were bearish.
Soft domestic manufacturing data also weighed on the Canadian dollar. Statistics Canada said manufacturing sales fell 1.7 per cent to C$51.4 billion in January.
Canadian bonds closed mixed on Tuesday, following the US Treasury markets ahead of the key US Federal Reserve interest rate announcement Wednesday, brokers said.
The two-year bond yielded 0.541% Tuesday, from 0.537% late Monday. The 10-year bond yielded 1.416%, from 1.436%. Bond yields rise as their prices fall.
