By Commodity News Service Canada
WINNIPEG, Feb. 17 – The Canadian dollar closed stronger on Tuesday, finding support from strength in crude oil values, analysts said.
The Canadian dollar closed at US$0.8081 or US$1=C$1.2374 on Tuesday, which compares with Friday’s North American settlement of US$0.8025 or US$1=C$1.2461. Markets were closed on Monday.
Broad weakness in the US dollar, and ideas that the Canadian currency has fallen too far, too fast, further underpinned the loonie.
Optimism that Greece and other members of the euro zone will come to an agreement about the country’s financial crisis added to the bullish tone.
However, ongoing worries about the negative effects weak oil prices are having on Canada’s economy helped to limit the upside.
Canadian bonds ended sharply lower on Tuesday, falling along with the US Treasury market. Optimism that Greece will avoid exiting the euro zone was also bearish, brokers said.
The two-year bond yielded 0.460% Tuesday, from 0.430% late Friday. The 10-year bond yielded 1.510%, from 1.434%. Bond yields fall as their prices rise.
