By Commodity News Service Canada
Winnipeg, July 24 – The Canadian dollar closed weaker against its US
counterpart on Wednesday, undermined by significantly lower crude oil prices
caused by a Chinese report showing a slowdown in the country’s manufacturing
sector, analysts said.
According to a HSBC survey, China’s manufacturing is at an 11-month low
in July, putting pressure of the government to reverse the slowdown.
Adding to the loonie’s bearish tone was a wave of US dollar buying
unleashed by higher US bond yields, market watchers said.
The Canadian currency late in the afternoon was quoted at C$0.9694
(US$1.0316). This compares with Tuesday’s late North American quote of
C$0.9723 (US$1.0285).
Canadian bonds decreased Wednesday amid a global bond market selloff,
brokers said.
Canada’s two-year bond yield is at 1.149% Wednesday, from 1.118% late
Tuesday, according to electronic trading platform CanDeal. The 10-year bond
yielded 2.478%, from 2.406%. Bond yields move inversely to bond prices.
