By Commodity News Service Canada
WINNIPEG, Oct. 24 – The Canadian dollar was sharply weaker compared to its US counterpart again on Thursday, losing more than a third of a cent and dropping below 96 cents US.
The Canadian currency was quoted at US$0.9592 or US$1=C$1.0425 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9630 or US$=C$1.0384.
Much of the weakness in the Canadian dollar continued to be linked to Wednesday’s Bank of Canada announcement, which said that interest rates would stay low for longer than anticipated in Canada due to slow economic growth.
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Positive US employment data was also bearish, as was disappointing Canadian employment insurance statistics.
Statistics Canada reported that 511,900 people received employment insurance benefits in August, an increase of 1.5% from July.
However, the Canadian currency received a little bit of spillover support from the gains seen in crude oil and gold values, analysts said.
Canadian bonds were higher, continued to be supported by Wednesday’s Bank of Canada’s announcement that interest rates will stay low for longer, traders said.
The two-year bond yielded 1.096% late Thursday, from 1.106% late Wednesday. The 10-year bond yielded 2.424%, from 2.430%. Bond yields fall as their prices rise.
