By Commodity News Service Canada
WINNIPEG, Nov. 27 – The Canadian dollar dropped three-quarters of a cent relative to the US dollar on Thursday, following the sharp tumble seen in crude oil values, analysts said.
Crude oil values tumbled to fresh four-and-a-half year lows; with the WTI January 2015 crude oil contract dropping below US$70 per barrel after OPEC announced they won’t cut production to support prices.
The Canadian dollar closed at US$0.8825 or US$1=C$1.1332 on Thursday, which compares with Wednesday’s North American settlement of US$0.8900 or US$1=C$1.1236. US markets were closed for Thanksgiving on Thursday, and will re-open Friday morning.
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Gold prices were also softening on Thursday, which put further downward pressure on the Canadian currency.
Traders were looking ahead to Friday when Statistics Canada will release September and third quarter gross domestic product data.
Canadian bonds closed higher on Thursday, reacting to the falling crude oil market after OPEC’s decision not to lower production, brokers said.
The two-year bond yielded 1.026% late Thursday, from 1.041% late Wednesday. The 10-year bond yielded 1.898%, from 1.932%. Bond yields fall as their prices rise.
