By Commodity News Service Canada
Winnipeg – January 24/13 – CNS – The Canadian dollar was
trading at a significantly weaker level versus the US currency in
late North American activity on Thursday. The Canadian unit moved
below parity with its US counterpart for the first time since
November, market watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0020 (99.80 US cents). This compares with Wednesday’s late
North American quote of C$0.9990 (100.10 US cents).
Much of the downswing in the value of the Canadian dollar
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dovish version of its monetary policy, analysts said.
The central bank signalled that higher interest rates were
“less imminent” during its policy announcement in the previous
day.
The weakness in the Canadian dollar was augmented by
corporate liquidation during the session, brokers said.
Gains in global crude oil helped to slow the weakening of
the Canadian dollar.
Financial participants are now looking to Friday’s consumer
price index release, which should show a monthly 0.2% decline in
both the headline and core indices.
Canadian bonds finished with declines across the yield curve
on Thursday as the market took its lead from the broad sell-off
in US Treasurys, market watchers said.
Canada’s two-year bond yield is at 1.126% Thursday,
unchanged from Wednesday. The 10-year bond yields 1.892%, from
1.875%. Bond yields move inversely to bond prices.
Fixed-income was mostly led by a decline in US jobless
claims by 5,000 to 330,000. It was the second-straight week of
falling claims and well ahead of expectations of 360,000 new
applications for jobless benefits last week.
END
