By Commodity News Service Canada
Winnipeg – May 14/13 – CNS – The Canadian dollar was trading
at a weaker level versus the US currency in late North American
activity on Tuesday. The downswing in the value of the Canadian
dollar came amid sentiment that the currency was overpriced and
in view of the losses seen in global crude oil, market watchers
said.
The fact the Australian dollar has dropped 3.7% against the
Canadian dollar since the beginning of the month has suggested to
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bring its losses in line with other non-US currencies, brokers
said.
The weakness in the Canadian unit also reflected ideas that
economic growth in the US will outpace growth in Canada during
2013, analysts said.
The Canadian currency late in the afternoon was quoted at
C$1.0172 (98.30 US cents). This compares with Monday’s late
North American quote of C$1.0110 (98.91 US cents).
The decline in the Canadian currency was tempered in part by
the advances seen in the North American equity sector, analysts
said.
On Wednesday, Canadian manufacturing data for March will be
released. Economists expect manufacturing sales increased by 0.5%
from the previous month, according to a report from the Royal
Canadian bonds ended on a weaker footing along the yield
curve on Tuesday as equity markets surged, siphoning funds away
from fixed-income markets, market watchers said.
Canada’s two-year bond yield was at 1.037% Tuesday, from
1.018% late Monday. The 10-year bond yield was at 1.949%, from
1.908%. Bond yields move inversely to bond prices.
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