By Commodity News Service Canada
WINNIPEG, March 20 – The Canadian dollar was up sharply to end the week against the US dollar, supported by a rebound in crude oil values, analysts said.
The Canadian dollar closed at US$0.7950 or US$1=C$1.2579 on Friday, which compares with Thursday’s North American settlement of US$0.7858 or US$1=C$1.2726.
Sentiment that Thursday’s drop was overdone was also supportive, as was spillover from the gains seen in gold prices, traders noted.
Improving risk sentiment further support the Canadian dollar, though disappointing Canadian economic data was bearish. Statistics Canada said the Consumer Price Index rose 1.0 per cent in the 12 months to February.
Retail sales data was also disappointing, as StatsCan said sales dropped by 1.7 per cent to C$41.4 billion due to lower gasoline prices.
Canadian bonds ended higher on Friday, taking some direction from the US Treasury market ahead of the weekend, brokers said.
The two-year bond yielded 0.457% Friday, from 0.477% late Thursday. The 10-year bond yielded 1.304%, from 1.312%. Bond yields rise as their prices fall.
