By Commodity News Service Canada
WINNIPEG, September 9 – The Canadian dollar was holding steady at the close on Tuesday, after dropping below 91 cents US earlier in the day.
The Canadian dollar closed at US$0.9115 or US$1=C$1.0971 on Tuesday, which compares with Monday’s North American settlement of US$0.9113 or US$1=C$1.0973.
The Canadian currency initially fell as the US dollar rose sharply, continuing to react to disappointing US jobs figures last week.
A lack of interest in buying riskier assets ahead of Scotland’s referendum on independence next week, including the loonie, due to was also bearish.
Read Also
Canadian Financial Close: Loonie up as U.S. dollar weakens
Glacier FarmMedia | MarketsFarm – The Canadian dollar closed above the 73 United States cent mark for the first time in a…
Canadian housing starts data was disappointing, putting further downward pressure on the Canadian dollar. Canada Mortgage and Housing Corp. said housing starts came in at an annualized rate of 192,368 units in August, falling below expectations of 195,000 units.
But, Monday’s positive Canadian building permits data and ideas that the currency dropped too far helped to keep it steady on Tuesday, brokers said.
Canadian bonds ended lower on Tuesday, following weakness seen in outside global bond markets, participants noted.
The two-year bond yielded 1.142% late Tuesday, from 1.121% late Monday. The 10-year bond yielded 2.172%, from 2.141%. Bond yields fall as their prices rise.
