By Commodity News Service Canada
WINNIPEG, July 8 – The Canadian dollar continued its downward spiral against its US counterpart on Wednesday, undermined by tumbling commodity prices, including crude oil, analysts said.
The Canadian dollar closed at US$0.7849 or US$1=C$1.2740 on Wednesday, which compares with Tuesday’s North American settlement of US$0.7867 or US$1=C$1.2712.
Traders also continued to shed risky assets, including the loonie, amid concerns about economic problems in Greece and China.
However, minutes from the latest US Federal Reserve meeting were supportive, as they revealed global economic problems may delay the raising of interest rates.
Sentiment that recent declines are overdone helped to limit the downside as well.
Canadian bonds closed sharply higher, reacting to the release of the latest US Federal Reserve meeting minutes, brokers said.
The two-year bond yielded 0.434% Wednesday, from 0.465% Tuesday. The 10-year bond yield was at 1.512%, from 1.576%. Bond yields fall as their prices rise.
