By Commodity News Service Canada
WINNIPEG, Jan. 7 – The Canadian dollar was slightly higher on Wednesday, seeing a late day recovery after falling nearly 30 points earlier in the session, analysts said.
A rebound in crude oil values was helping to push the loonie higher Wednesday, as were ideas that recent losses were overdone.
The Canadian dollar closed at US$0.8460 or US$1=C$1.1820 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8455 or US$1=C$1.1828.
The Canadian currency’s gains were limited by disappointing domestic trade data and worries about slow economic growth due to recent plunging oil prices, brokers added.
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Statistics Canada said Canada’s exports declined 3.5 per cent in November, and imports were down 2.7 per cent. As a result, Canada’s merchandise trade deficit with the world widened from C$327 million in October to C$644 million in November.
Canadian bonds closed lower on Wednesday, undermined by the late recovery seen in crude oil values and profit taking on recent gains, market watchers said.
The two-year bond yielded 0.970% late Wednesday, from 0.957% late Tuesday. The 10-year bond yielded 1.648%, from 1.637%. Bond yields fall as their prices rise.
