By Commodity News Service Canada
WINNIPEG, March 4 – The Canadian dollar closed lower on Tuesday, undermined by positioning ahead of Wednesday’s Bank of Canada policy announcement, analysts said.
The Canadian dollar closed at US$0.9009 or US$1=C$1.1100 on Tuesday, which compares with Monday’s North American settlement of US$0.9022 or US$=C$1.1084.
Spillover pressure from the sharp losses seen in crude oil and gold prices also contributed to the Canadian dollar’s softness.
Traders continued to monitor the political situation between Ukraine and Russia, with some investors returning to riskier assets amid ideas that the problems are starting to ease, market watchers said.
Canadian bonds were lower, as concerns about the political problems in Ukraine eased and traders shed positions ahead of Wednesday’s Bank of Canada announcement, brokers said.
The two-year bond yielded 1.021% late Tuesday, from
0.997% late Monday. The 10-year bond yielded 2.464%, from
2.403%. Bond yields fall as their prices rise.
