By Commodity News Service Canada
WINNIPEG, July 2 – The Canadian dollar fell sharply against the US dollar Thursday, moving well below the 80 cents US mark.
The Canadian dollar closed at US$0.7971 or US$1=C$1.2545 on Thursday, which compares with Tuesday’s North American settlement of US$0.8006 or US$1=C$1.2490. Canadian markets were closed Wednesday for Canada Day.
Much of the selling was linked to traders shedding risky assets as they continue to worry about economic problems in Greece.
Spillover pressure also came from the declines seen in commodity prices, including gold and crude oil, which is one of Canada’s biggest exports.
However, some support came from soft US jobs creation data. The US government said 223,000 new jobs were created in May, below expectations of 233,000 new jobs.
Canadian bonds closed mixed on Thursday, reacting to strength in US Treasurys and disappointing US jobs data, analysts said.
The two-year bond yielded 0.479% Thursday, from 0.487% Tuesday. The 10-year bond yield was at 1.736%, from 1.690%. Bond yields rise as their prices fall.
