By Commodity News Service Canada
WINNIPEG, March 12 – The Canadian dollar was down slightly against the US dollar, closing just below 90 cents US on Wednesday.
Ongoing concerns about economic growth in China sent commodity prices lower, and hurt risk sentiment, which in turn devalued the Canadian dollar.
The Canadian dollar closed at US$0.8996 US$1=C$1.1116 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9006 or US$=C$1.1103.
Some downward pressure may have also come from upcoming election in Quebec, which could result in the separatist parti Quebecois gaining a majority government, analysts said.
There was no significant Canadian economic data release on Wednesday, though traders were awaiting Thursday’s US retail sales data.
Canadian bonds moved higher, as traders were more interested in safe-haven assets due to Chinese economic growth concerns and worries about ongoing political problems in Ukraine, brokers said.
The two-year bond yielded 1.020% late Wednesday, from
1.035% late Tuesday. The 10-year bond yielded 2.447%, from
2.489%. Bond yields fall as their prices rise.
