By Commodity News Service Canada
Winnipeg, June 4 – The Canadian dollar fell lower against its US counterpart at midday Thursday, as repeated sell-offs in bond markets left traders scrambling.
The loonie was at US$0.8016 or US$1 = C$1.2475 at 11:50 CDT Thursday morning. German 10-year bonds hit their highs for the year over fears of escalating borrowing costs. Indonesia’s central bank was making preparations to support its currency after the rupiah dropped to a 17-year low against the dollar.
In contrast, the economic situation in Greece appears to be improving. The cash-strapped country is expected to make a payment to the International Monetary Fund on Friday. There is growing speculation a deal between the country and its creditors is within sight.
Oil prices seem to have settled ahead of tomorrow’s meeting of The Organization of the Petroleum Exporting Countries (OPEC).
On the commodity markets the July crude contract in New York fell US$1.53 to US$58.11 a barrel. The August gold contract declined US$9.90 to US$1,175.50 an ounce.
At 11:50 CDT Thursday morning, the Toronto Stock Exchange was down 166.97 points to 14,987.69.
