By Commodity News Service Canada
WINNIPEG, May 28 – The Canadian dollar ended slightly lower relative to the US dollar on Wednesday, erasing earlier gains.
Some of the weakness was linked to spillover pressure from the losses seen in commodity prices, including crude oil, gold and copper.
The Canadian dollar closed at US$0.9195 or US$1=C$1.0875 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9207 or US$1=C$1.0861.
Easing worries about the political problems in Ukraine were also behind some of the Canadian currency’s downward movement, brokers added.
The evening of positions ahead of key Canadian gross domestic product data on Friday was a feature of the activity.
Canadian bonds closed sharply higher, lifted by expectations that key central banks will loosen monetary policy in the near future, analysts said.
The two-year bond yielded 1.037% late Wednesday, from 1.055% late Tuesday. The 10-year bond yielded 2.219%, from 2.301%. Bond yields fall as their prices rise.
