By Commodity News Service Canada
WINNIPEG, July 7 – The Canadian dollar fell sharply against the US dollar Tuesday, dropping well below the key 79 cents US level.
The Canadian dollar closed at US$0.7867 or US$1=C$1.2712 on Tuesday, which compares with Monday’s North American settlement of US$0.7904 or US$1=C$1.2652.
The weakness continued to be linked to the economic turmoil in Greece, as traders shed riskier assets as they wait for the problems to be resolved, analysts said.
Declines seen in gold values were also bearish, as was disappointing Canadian economic data. Statistics Canada said Canada’s merchandise trade deficit widened to C$3.34 billion in April, the second largest deficit ever recorded.
Read Also
ICE Midday: Canola making small gains
Glacier FarmMedia – Canola futures on the Intercontinental Exchange were slightly higher in the middle of Friday trading, continuing their choppy…
However, firmness in crude oil prices on Tuesday helped to limit the downside. Reports that European officials will consider Greece’s latest proposal were also supportive.
Canadian bonds closed higher on Tuesday, as traders continued to flock to safe-haven assets, including government bonds, amid the economic turmoil in Greece, brokers said.
The two-year bond yielded 0.460% Tuesday, from 0.465% Monday. The 10-year bond yield was at 1.561%, from 1.637%. Bond yields fall as their prices rise.
