By Commodity News Service Canada
WINNIPEG, Dec. 10 – The Canadian dollar ended sharply lower relative to the US dollar on Wednesday, following the tumbling crude oil market, analysts said.
The Canadian dollar closed at US$0.8711 or US$1=C$1.1480 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8741 or US$1=C$1.1440.
Bank of Canada governor Stephen Poloz said the tumbling crude oil market will likely weigh on the Canadian economy, which was also bearish for the loonie.
Concerns about large household debt, a slowing housing market and weak economic growth in China and Europe harming Canadian economic activity were also behind the softness.
Canadian bonds closed higher on Wednesday, with the weakness in crude oil sending investors to safe-haven assets, such as government bonds, brokers said.
The two-year bond yielded 0.995% late Wednesday, from 1.022% late Tuesday. The 10-year bond yielded 1.825%, from 1.881%. Bond yields fall as their prices rise.
