TORONTO – The Canadian dollar was higher Tuesday amid data showing that foreign investors reduced their holdings of Canadian securities during December, mainly in Canadian dollar-denominated bonds.

The loonie was up 0.11 of a cent to 91.16 cents US from Friday’s close. Canadian banks and North American stock markets were closed Monday for holidays.

Statistics Canada reported that foreign investors cut their holdings of Canadian securities by $4.3 billion in December — a month when the Canadian dollar depreciated against its U.S. counterpart and hit its lowest level since August 2010.

Statistics Canada also noted that “the differential between Canadian long- and short-term interest rates continued to widen, as long-term rates were up further while short-term rates eased.”

Traders also looked to new stimulus measures from the Japanese government and awaited U.S. manufacturing and housing data.

The Bank of Japan plans to top up its monetary stimulus by doubling the size of its fund to support bank lending and its fund to support economic growth. The funds, which were due to expire shortly, were extended for another year after fourth quarter economic growth fell short of forecasts despite massive fiscal and monetary stimulus intended to engineer a recovery.

Traders also took in the Empire State Manufacturing Index for February. The snapshot of manufacturing activity in the U.S. Northeast declined to a much worse than expected reading of 4.48 in February, down from 12.5 in January, likely in part to severe winter weather conditions.

Also, the National Association of Home Builders’ housing market index is expected to stay unchanged at the 56 mark for February. The index has drifted slightly lower in recent months because of a sharp rise in mortgage rates.

Commodity markets racked up gains as the March crude contract on the New York Mercantile Exchange gained $1 to US$101.30 a barrel.

March copper was up a penny to US$3.27 a pound while April bullion rose 80 cents to US$1,319.40 an ounce.