By Commodity News Service Canada
WINNIPEG, July 29 – The Canadian dollar eased against the US dollar on Wednesday, reacting to an announcement from the US Federal Reserve, analysts said.
The US Federal Reserve left interest rates unchanged. But, they said the employment sector has been making good gains recently, which is leading to speculation that they will consider raising interest rates as soon as September 2015.
The Canadian dollar closed at US$0.7726 or US$1=C$1.2944 on Wednesday, which compares with Tuesday’s North American settlement of US$0.7736 or US$1=C$1.2927.
Concerns about economic problems in China, and Canada, were also weighing on the Canadian currency.
However, sentiment that recent declines are overdone limited the downside, as did spillover support from the gains seen in crude oil.
Canadian bonds were lower on Wednesday, reacting to the US Federal Reserve’s policy announcement, according to market watchers.
The two-year bond yielded 0.463% on Wednesday, from 0.443% on Tuesday. The ten-year bond yield was at 1.524%, from 1.506%. Bond yields rise as their prices fall.
