By Commodity News Service Canada
WINNIPEG, Feb. 5 – The Canadian dollar closed sharply higher on Thursday, jumping back above the 80 cents US mark, lifted by a rally in crude oil values, analysts said.
The Canadian dollar closed at US$0.8049 or US$1=C$1.2424 on Thursday, which compares with Wednesday’s North American settlement of US$0.7959 or US$1=C$1.2565.
General weakness in the US dollar and ideas that recent losses in the loonie were overdone provided further support for the Canadian currency.
Positive Canadian trade data added to the bullish tone. Statistics Canada said Canada’s merchandise trade deficit with the world widened to C$649 million in December, from C$355 in November. Pre-report expectations called for a deficit of C$1.2 billion.
Canadian bonds ended sharply lower on Thursday, reacting to the strength in crude oil values and a rally in outside stock markets, brokers said.
The two-year bond yielded 0.432% Thursday, from 0.400% late Wednesday. The 10-year bond yielded 1.352%, from 1.262%. Bond yields fall as their prices rise.
