By Commodity News Service Canada
WINNIPEG, Dec. 4 – The Canadian dollar closed lower against the US dollar for the fourth straight session on Wednesday, undermined by a dovish statement from the Bank of Canada (BoC), analysts said.
The BoC announced that they will keep their interest rates unchanged; highlighting that Canadian inflation isn’t reaching targets this year.
The Canadian currency was quoted at US$0.9391 or US$1=C$1.0649 at the close on Wednesday, which compares with Tuesday’s North American settlement of US$0.9398 or US$=C$1.0641.
Continued worries that the US Federal Reserve will ease out of stimulus programs soon were also bearish for the loonie.
However, the currency’s downside was limited by spillover support from the gains seen in commodities, including crude oil and gold.
Canadian bonds were mixed amid support from the dovish BoC announcement and downward pressure from the negative tone in US Treasury markets, traders said.
The two-year bond yielded 1.066% late Wednesday, from 1.075% late Tuesday. The 10-year bond yielded 2.648%, from 2.587%. Bond yields fall as their prices rise.
