By Commodity News Service Canada
WINNIPEG, May 26 – The Canadian dollar closed sharply lower against the US dollar Tuesday, following the declines seen in crude oil values, analysts said.
The Canadian dollar closed at US$0.8046 or US$1=C$1.2427 on Tuesday, which compares with Monday’s North American settlement of US$0.8121 or US$1=C$1.2313.
Broad strength in the US dollar and a declining appetite for riskier assets, such as the loonie, also contributed to the weakness.
Ongoing worries about slow economic growth in Canada, as oil production has been reduced in recent months, were also bearish.
Canadian bonds were higher, following the US Treasury market on Tuesday as traders flocked to safe-haven assets, brokers said.
The two-year bond yielded 0.647% Tuesday, from 0.673% late Monday. The 10-year bond yield was at 1.702%, from 1.778%. Bond yields fall as their prices rise.
