By Commodity News Service Canada
WINNIPEG, Dec. 12 – The Canadian dollar ended sharply lower relative to the US dollar on Friday, hitting a five-and-a-half year low during the trading session.
A continuing falling oil market was behind the losses, as economists are worried the recent drop in oil values will weigh heavily on the Canadian economy, analysts said.
The Canadian dollar closed at US$0.8642 or US$1=C$1.1572 on Friday, which compares with Thursday’s North American settlement of US$0.8675 or US$1=C$1.1527.
Worries about slow economic growth in Europe and China were also bearish for the Canadian dollar. Reports showed economic growth in China slowed to a five-year low of 7.3 per cent last quarter.
Canadian bonds closed higher on Friday, as traders were moving their money into safe haven assets as the crude oil market continued to tumble, brokers said.
The two-year bond yielded 0.970% late Friday, from 1.017% late Thursday. The 10-year bond yielded 1.766%, from 1.827%. Bond yields fall as their prices rise.
