By Commodity News Service Canada
Winnipeg – February 20/13 – CNS – The Canadian dollar was
trading at a significantly weaker level versus the US currency in
late North American activity on Wednesday. The Canadian unit hit
new seven month lows during the session reflecting looming
concerns over spending cuts in the US, market watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0168 (98.34 US cents). This compares with Tuesday’s late
North American quote of C$1.0118 (98.83 US cents).
Investors also sold the Canadian currency and bought the US
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Earlier on Wednesday, the Canadian dollar shrugged off a
8.5% decline in US housing starts in January, while new home
construction was up 23.6%. Separately, US wholesale prices rose
by 0.2% in January from the previous month, the first time prices
increased since September.
The downswing in the value of the Canadian dollar also came
as global crude oil values lost ground. The losses in the North
American equity sector further encouraged the sell-off of the
Canadian unit, brokers said.
Canadian bonds edged higher across the yield curve on
Wednesday after the release of minutes from the latest US Federal
Reserve meeting, market watchers said.
Canada’s two-year bond yield is at 1.123% Wednesday, from
1.135% late Tuesday. The 10-year bond yields 2.018%, from 2.019%.
Bond yields move inversely to bond prices.
No significant economic data is scheduled for release in
Canada on Thursday, but the US will report several indicators
that could move the bond curve, including the consumer-price
index and existing home sales for January as well as jobless
claims for the week ending Feb. 17.
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