By Commodity News Service Canada
WINNIPEG, Nov. 21 – The Canadian dollar closed sharply lower against its US counterpart on Thursday, losing almost three-quarters of a cent.
Some of the weakness in the Canadian currency was linked to Bank of Canada’s (BoC) Stephen Poloz’s reiteration that the BoC will keep interest rates low for longer than first anticipated during an announcement late Wednesday.
The Canadian currency was quoted at US$0.9505 or US$1=C$1.0521 at the close on Thursday, which compares with Wednesday’s North American settlement of US$0.9572 or US$=C$1.0447.
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The Canadian dollar also moved lower in reaction to the sharp advance seen in the US dollar following the US Federal Reserve’s Thursday announcement that they won’t back of stimulus programs in the near term.
Sharp losses seen in gold prices, one of Canada’s largest exports, were also bearish for the loonie, analysts said. However, crude oil prices were higher, which provided some support.
Canadian bonds were mixed, as traders were awaiting the release of retail trade and consumer price index data from Statistics Canada on Friday.
The two-year bond yielded 1.087% late Thursday, from 1.119% late Wednesday. The 10-year bond yielded 2.629%, from 2.627%. Bond yields fall as their prices rise.
