By Commodity News Service Canada
WINNIPEG, Oct. 15 – The Canadian dollar was stronger relative to the US dollar on Wednesday, seeing a recovery following a recent drop to more than five-year lows.
The Canadian dollar closed at US$0.8883 or US$1=C$1.1258 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8845 or US$1=C$1.1306.
Weakness in the value of the US dollar, amid disappointing retail sales data, was also bullish. The US government reported retail sales dropped 0.3 per cent in September, while expectations called for a 0.1 per cent decline.
Strength in gold prices further supported the Canadian dollar, though weakness in crude oil values was bearish. Downward pressure also came from ongoing worries about slow global economic growth.
Canadian bonds continued their rally on Wednesday, as traders flocked to “safe-haven” assets amid ongoing economic concerns in Europe, brokers said.
The two-year bond yielded 0.899% late Wednesday, from 0.983% late Tuesday. The 10-year bond yielded 1.882%, from 1.946%. Bond yields fall as their prices rise.
