By Commodity News Service Canada
WINNIPEG, April 11 – The Canadian dollar moved sharply lower against the US dollar on Friday, following the weakness seen in outside equity markets, analysts said.
The Canadian dollar closed at US$0.9108 or US$1=C$1.0979 on Friday, which compares with Thursday’s North American settlement of US$0.9150 or US$1=C$1.0929.
Spillover pressure from the weakness seen in commodity prices, including crude oil, gold and copper, was also responsible for some of the softness.
Concerns about slow global economic growth, after the release of disappointing Chinese trade and sales data on Thursday and Friday, were also bearish for the loonie.
There was no significant Canadian economic data released on Friday. Traders were looking ahead to Tuesday’s domestic manufacturing data and Wednesday’s Bank of Canada policy statement.
Canadian bonds ended lower, as investors continued to move their money out of riskier assets, and into safe-havens, including bonds, brokers said.
The two-year bond yielded 1.045% late Friday, from 1.056% late Thursday. The 10-year bond yielded 2.397%, from 2.438%. Bond yields fall as their prices rise.
