By Commodity News Service Canada
WINNIPEG, March 3 – The Canadian dollar closed lower as traders were avoiding risk due to concerns about the political turmoil between Ukraine and Russia, analysts said.
The Canadian dollar closed at US$0.8980 or US$1=C$1.1136 on Monday, which compares with Friday’s North American settlement of US$0.9030 or US$=C$1.1075.
The loonie’s downside was limited by positive Canadian Industrial Price Product Index (IPPI) news. According to Statistics Canada, the Industrial Product Price Index (IPPI) rose 1.4 per cent in January due to higher petroleum and energy product prices. Traders expected the IPPI to rise 0.5 per cent.
Spillover support from the rally seen in crude oil and gold prices also helped to prevent the Canadian currency from dropping further against the US dollar.
Canadian bonds were higher as the political problems in the Black Sea region caused investors to be more interested in safe-haven assets, brokers said.
The two-year bond yielded 0.995% late Monday, from
1.001% late Friday. The 10-year bond yielded 2.402%, from
2.428%. Bond yields fall as their prices rise.
