By Commodity News Service Canada
WINNIPEG, June 24 – The Canadian dollar finished weaker compared to its US counterpart on Monday, as much of the selling continued to be linked to last week’s US Federal Reserve announcement, analysts said.
US Federal Reserve chairman Ben Bernanke announced last week that the government agency could start to ease out of stimulus programs before the end of 2013.
The Canadian currency was quoted at US$0.9537, or US$1=C$1.0486 at the close on Monday, which compares with Friday’s North American close of US$0.9564, or US$=C$1.0456.
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Weakness in commodities, declines seen in North American equity markets and global economic concerns were also responsible for some of the Canadian dollar’s downward move.
However, ideas that recent declines were overdone helped to take the Canadian currency off its lows of the day, market watchers noted.
There was no significant Canadian economic data released on Monday. Traders were looking ahead to Canadian employment and gross domestic product data due out on Thursday and Friday.
Canadian bonds were lower Monday amid weakness in North American equity markets and continued pressure from last week’s US Federal Reserve announcement.
The two-year bond yielded 1.247% late Monday, from 1.235% late Friday. The 10-year bond yielded 2.493%, from 2.448%. Bond yields fall as their prices rise.
