By Commodity News Service Canada
WINNIPEG, September 26 – The Canadian dollar ended sharply lower on Friday, dropping below the 90 cents U.S. mark.
An upward revision to U.S. gross domestic product data for the second quarter caused the U.S. dollar to rise sharply, which, in turn, pushed the Canadian currency lower, analysts said.
The Canadian dollar closed at US$0.8965 or US$1=C$1.1155 on Friday, which compares with Thursday’s North American settlement of US$0.9003 or US$1=C$1.1108.
Dovish comments from the Bank of Canada earlier in the week and concerns about slow economic growth in other parts of the world were also bearish.
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Weakness in gold prices also weighed on the loonie, though some spillover support came from the advances seen in crude oil and copper.
Canadian bonds ended lower on Friday, reacting to a sharp rally in outside stock markets. News that fund manager Bill Gross is leaving Pimco for a new position was also bearish, traders said.
The two-year bond yielded 1.135% late Friday, from 1.119% late Thursday. The 10-year bond yielded 2.168%, from 2.148%. Bond yields fall as their prices rise.
