Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, Feb. 18 – The Canadian dollar moved higher against the US dollar after Statistics Canada released its international transactions in securities report for December Tuesday morning.

Statistics Canada reported that foreign investors reduced their holdings of Canadian securities by C$4.3 billion in December.

The Canadian dollar closed at US$0.9132 or US$1=C$1.0951 on Tuesday, which compares with Friday’s North American settlement of US$0.9105 or US$=C$1.0983. Canadian and US markets were closed Monday.

Support came from positive economic news out of Japan, as well as spillover from the gains seen in crude oil, gold and copper prices.

Canadian bonds were higher on Tuesday, reacting to disappointing economic news out of Canada and the US, market watchers said.

The two-year bond yielded 0.999% late Tuesday, from 1.016% late Friday. The 10-year bond yielded 2.443%, from 2.469%. Bond yields fall as their prices rise.