By Commodity News Service Canada
WINNIPEG, May 21 – The Canadian dollar closed lower relative to the US dollar on Wednesday. Broad strength in the value of the US dollar was behind the Canadian dollar’s weakness, analysts said.
The Canadian dollar closed at US$0.9162 or US$1=C$1.0915 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9175 or US$1=C$1.08099.
Losses seen in metals prices, including gold and copper, were also behind some of the downward pressure. However, the loonie’s downside was limited by strength in crude oil values.
There was no significant Canadian economic data released on Wednesday. Traders were looking ahead to Thursday’s retail sales data and the consumer price index on Friday.
Canadian bonds closed lower, following the declines seen in the US Treasury market on Wednesday, industry watchers said.
The two-year bond yielded 1.049% late Wednesday, from 1.043% late Tuesday. The 10-year bond yielded 2.300%, from 2.228%. Bond yields fall as their prices rise.
