By Commodity News Service Canada
WINNIPEG, June 12 – The Canadian dollar closed lower on Wednesday, undermined by spill over pressure from the weakness seen in North American equity markets, analysts said.
The Canadian currency was quoted at US$0.9792, or US$1=C$1.0212 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9815, or US$=C$1.0189.
Expectations that the US Federal Reserve will soon start backing out of its stimulus programs put further downward pressure on the Canadian dollar.
However, strong commodity prices and recent positive Canadian economic data helped to limit the Canadian unit’s downside potential.
Canadian bonds were slightly lower amid uncertainty surrounding the US Federal Reserve’s upcoming actions and the global economic outlook, brokers noted.
The two-year bond yielded 1.158% late Wednesday, from 1.152% late Tuesday. The 10-year bond yielded 2.202%, from 2.174% Tuesday. Bond yields fall as their prices rise.
