By Commodity News Service Canada
WINNIPEG, June 12 – The Canadian dollar closed lower against the US dollar Friday, undermined by weakness in commodities, including crude oil.
The Canadian dollar closed at US$0.8128 or US$1=C$1.2311 on Friday, which compares with Thursday’s North American settlement of US$0.8147 or US$1=C$1.2275.
Worries about renewed problems in Greece, related to their recent debt crisis, added to the bearish tone, analysts noted.
The loonie was also reacting to concerns about economic problems in Europe after German officials said recent strength in the euro is having a negative impact on economic recovery efforts.
However, continued expectations that Canada’s economy will recover later this year, and positive housing data released Thursday, were supportive.
Canadian bonds were higher on Friday, as traders flocked to safe-haven assets, such as government bonds, amid worries about Greece’s economy, brokers said.
The two-year bond yielded 0.648% Friday, from 0.657% late Thursday. The 10-year bond yield was at 1.803%, from 1.812% Bond yields fall as their prices rise.
