WINNIPEG, MB, Nov 04, 2009 (Resource News International via COMTEX News Network) --

The Canadian dollar finished Wednesday's North American trading session on a stronger footing versus the US dollar. Much of the strength in the Canadian dollar was associated with the advances seen in global crude oil and gold values, market watchers said.

The Canadian currency late in the afternoon was quoted at C$1.0620 (94.16 US cents). This compares with Tuesday's late North American quote of $1.0688 (93.56 US cents).

Adding to the strength in the Canadian currency were the gains posted by the North American equity markets, brokers said. Follow-through technical momentum was also associated with the firmness seen in the Canadian dollar.

Wednesday's US Federal Reserve policy statement didn't have a huge effect on the Canadian dollar and other currencies, but the Fed's refusal to hint at the eventual reversal of its accommodative policy stance and its restatement of the likelihood of rates remaining very low for an extended period also were seen as opening up some further downside risk for the US dollar against many currencies, analysts said.

Canadian bonds finished the session lower along the yield curve on Wednesday. Supply pressures and strength in the North American equity markets helped Canadian bond issues weaken, market watchers said.

Gains for global and North American stock markets kept bonds on a downward path throughout Wednesday's session, and the selling was also exacerbated by cheapening pressures ahead of another rush of new government bond supply from Canada and the US in coming days, analysts said.

Canada will hold a 10-year bond auction Thursday, while the US Treasury Wednesday announced that it will offer an aggregate total of $81 billion of new three-, 10-, and 30-year bonds next week.

In a speech to a local business audience in Prince George, British Columbia, Bank of Canada deputy governor John Murray on Wednesday also repeated the Canadian central bank's standing conditional commitment to keeping its policy rate at 0.25% until the end of 2010's second quarter.

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