By Commodity News Service Canada
WINNIPEG, April 28 – The Canadian dollar ended higher against its US counterpart Tuesday, supported by positive comments from Bank of Canada Governor Stephen Poloz, analysts said.
Poloz noted another interest rate cut won’t be necessary, as the Canadian economy is already starting to show signs of improvement after being hurt by falling oil prices.
The Canadian dollar closed at US$0.8313 or US$1=C$1.2030 on Tuesday, which compares with Monday’s North American settlement of US$0.8264 or US$1=C$1.2101.
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A sell-off in the US dollar ahead of Wednesday’s US Federal Reserve policy announcement was also bullish, as was strength in gold.
Though, expectations that first quarter economic growth in Canada was weak, due to low oil prices, limited the downside. Traders were looking ahead to February Canadian gross domestic product data on Thursday.
Canadian bonds ended lower Tuesday, following the US Treasury market as it retreated ahead of Wednesday’s US Federal Reserve announcement, brokers said.
The two-year bond yielded 0.674% Tuesday, from late 0.648% Monday. The 10-year bond yield was at 1.552%, from 1.466%. Bond yields fall as their prices rise.
