Canadian Forex/Bond Review: C$ Strengthens On Central Bank Move
Winnipeg, MB, Nov. 30, 2011 (CNS Canada), Nov 30, 2011 (Commodity News Service Canada, Inc. via COMTEX) –
The Canadian dollar
was sharply stronger on Wednesday, as news that a number of
international central banks, including the Bank of Canada, had
come up with a plan to shore-up the global economy provided support
for riskier assets.
The Canadian currency late in the afternoon was quoted at
US$0.9801, or US$1=C$1.0203. This compares with Tuesday’s North
American close of US$0.9706, or US$1=C$1.0303.
News that central banks would lower the price of currency
swaps, together with other measures, accounted for much of the
strength in the Canadian dollar. Gains in equities, crude oil and
other commodity markets, were also supportive.
Solid third quarter Canadian economic data added to the
firmer tone in the currency, according to participants.
However, those outside markets did finish off their highs for
the day, and the Canadian dollar also tempered its advances as the
session progressed.
Canadian bonds ended lower on Wednesday, following US Treasurys
as the move by the central banks caused investors to turn away from
the market in favour of riskier assets.
Copyright 2011 Commodity News Service Canada, Inc.
