By Commodity News Service Canada
WINNIPEG, August 26 – The Canadian dollar was stronger relative to the US dollar on Tuesday, finding support from news that Burger King is buying Tim Hortons in a cash and stock deal worth about US$11 billion.
Because Burger King is a foreign buyer purchasing a Canadian company, they will need Canadian currency in order to close the deal, which would increase demand for Canada’s dollar, according to analysts.
The Canadian dollar closed at US$0.9131 or US$1=C$1.0952 on Tuesday, which compares with Monday’s North American settlement of US$0.9107 or US$1=C$1.0971.
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Glacier FarmMedia | MarketsFarm – The Canadian dollar continued its rise on Wednesday with its best close in nearly three weeks….
Chart-based selling of the US dollar, after it hit a three-month high overnight, was also bullish for the loonie, brokers said.
Spillover support also came from the gains seen in crude oil and gold prices.
Traders were looking ahead to Friday when Statistics Canada will release its latest gross domestic product figures.
Canadian bonds ended little changed on Tuesday, following similar action in US markets, according to participants.
The two-year bond yielded 1.104% late Tuesday, from 1.091% late Monday. The 10-year bond yielded 2.039%, from 2.044%. Bond yields fall as their prices rise.
