By Commodity News Service Canada
WINNIPEG, Nov. 12 – The Canadian dollar closed lower against the US dollar on Tuesday, as expectations that the US Federal Reserve will back out of stimulus programs soon, due to the recovery of the US economy, weighed on its value.
The Canadian currency was quoted at US$0.9530 or US$1=C$1.0493 at the close on Tuesday, which compares with Friday’s North American settlement of US$0.9544 or US$=C$1.0478. The market was closed Monday to observe Remembrance Day in Canada.
Some of the weakness in the value of the Canadian currency was also linked to spillover pressure from the losses seen in gold and crude oil values, analysts said.
Canadian bonds were lower on Tuesday; as the market was giving back some of the recent gains amid quiet activity, traders said.
The two-year bond yielded 1.139% late Tuesday, from 1.127% late Friday. The 10-year bond yielded 2.651%, from 2.603%. Bond yields fall as their prices rise. The Canadian bond market was also closed for Remembrance Day on Monday.
