Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Dec. 10 – The Canadian dollar firmed against the US dollar on Tuesday, lifted by the strong advances seen in commodities, including crude oil and gold, analysts said.

The Canadian currency was quoted at US$0.9431 or US$1=C$1.0603 at the close on Tuesday, which compares with Monday’s North American settlement of US$0.9403 or US$=C$1.0635.

Some of the Canadian dollar’s upward movement was also linked to a sell-off of the US dollar, which was sparked by declines seen in outside equity markets.

The Canadian currency was also said to be seeing a corrective bounce following recent sharp declines, participants added.

Canadian bonds moved higher following news that a bond for the Muskrat Falls hydroelectric facility was priced Tuesday, resulting in a gain of C$5 billion for the Newfoundland energy project, brokers noted.

The two-year bond yielded 1.076% late Tuesday, from 1.085% late Monday. The 10-year bond yielded 2.594%, from 2.669%. Bond yields fall as their prices rise.