By Commodity News Service Canada
WINNIPEG, September 10 – The Canadian dollar closed stronger on Wednesday, benefiting from a retreat in the value of the US dollar ahead of next week’s US Federal Reserve interest rate announcement, analysts said.
The Canadian dollar closed at US$0.9145 or US$1=C$1.0935 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9115 or US$1=C$1.0971.
Technical based buying, as the Canadian currency neared a key level against the US dollar during Wednesday’s session, was also bullish.
Strength in gold and copper prices was also supportive for the Canadian dollar, though weakness in crude oil was bearish.
Industry participants were being cautious ahead of next week, when Scotland will vote on whether or to become independent from England.
Canadian bonds ended lower Wednesday, as traders were liquidating fixed-income securities ahead of next week’s Federal Reserve meeting, brokers said.
The two-year bond yielded 1.150% late Wednesday, from 1.139% late Tuesday. The 10-year bond yielded 2.197%, from 2.173%. Bond yields fall as their prices rise.
