By Commodity News Service Canada
WINNIPEG, August 19 – The Canadian dollar was sharply lower relative to the US dollar on Tuesday, with general strength in the US currency accounting for the loonie’s weakness, analysts said.
The US dollar found support from strong domestic housing data. Good demand for the US currency ahead of US Federal Reserve policy meeting minutes later this week were also accounting for the strength in the greenback, brokers said.
The Canadian dollar closed at US$0.9138 or US$1=C$1.0943 on Tuesday, which compares with Monday’s North American settlement of US$0.9186 or US$1=C$1.0886.
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Spillover pressure from the weakness in commodity prices, including crude oil, gold and copper, was also bearish for the Canadian dollar.
Traders were looking ahead to Friday for the next Canadian economic data, as Statistics Canada will release inflation and retail sales figures.
Canadian bonds ended slightly lower, as traders continued to back away from safe-haven assets in light of the easing tension between Ukraine and Russia, analysts said.
The two-year bond yielded 1.073% late Tuesday, unchanged from late Monday. The 10-year bond yielded 2.074%, from 2.064%. Bond yields fall as their prices rise.
