By Commodity News Service Canada
WINNIPEG, Oct. 14 – The Canadian dollar was down sharply against the US dollar on Tuesday, undermined by a strengthening US dollar, analysts said.
The Canadian dollar closed at US$0.8845 or US$1=C$1.1306 on Tuesday, which compares with Friday’s North American settlement of US$0.8915 or US$1=C$1.1217. Canadian markets were closed Monday for Thanksgiving.
Some of the weakness was also linked to declining crude oil prices and risk aversion due to ongoing global economic growth concerns.
Last week, the International Monetary Fund lowered its growth forecast for the world economy, and a slew of weak data was released out of Europe.
Canadian bonds ended sharply higher on Tuesday, as traders were avoiding riskier assets, and investing in safe-haven options, such as bonds, brokers said.
The two-year bond yielded 0.985% late Tuesday, from 1.053% late Friday. The 10-year bond yielded 1.949%, from 2.014%. Bond yields fall as their prices rise.
