TORONTO (Reuters) - The Canadian dollar hovered near parity with the U.S. currency on Tuesday after a massive storm slammed into the U.S. East Coast, shuttering equity and other trading systems for a second day.
Trade was muted by a lack of volume, though some traders said they expected corporate and sovereign buying of the greenback ahead of the month-end and as investors unwound long Canada dollar or short euro-Canada positions.
“The market is acting like it’s a holiday, very low volatility, narrow ranges,” said Steve Butler, director of foreign exchange trading at Scotiabank. “Today might be a little busier because we’re approaching month-end.”
At 8:58 a.m. (1258 GMT) the Canadian dollar was trading at C$1.0002 to the greenback, or $0.9998, compared with C$1.0008, or $0.9992, at Monday’s North American close.
The currency at one pointed hit C$1.0020 to the greenback, its weakest level since August 6.
Canadian bond markets remained open though volumes were also hit by the closure of the U.S. market. The two-year bond was off a Canadian cent to yield 1.089 percent, while the benchmark 10-year bond rose 1 Canadian cent to yield 1.796 percent.
Editing by Jeffrey Hodgson