By Commodity News Service Canada
WINNIPEG, Dec. 17 – The Canadian dollar ended little changed relative to the US dollar on Wednesday, reversing earlier gains after the US Federal Reserve released its latest policy announcement.
The statement noted that the US Federal Reserve plans to wait a “considerable” time before raising interest rates.
The Canadian dollar closed at US$0.8592 or US$1=C$1.1639 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8594 or US$1=C$1.1636.
Crude oil values were slightly higher, rebounding off recent lows, which was supportive. But, oil prices are still very weak, which will likely weigh on the Canadian economy, market watchers said.
Canadian bonds closed lower on Wednesday, reacting to the US Federal Reserve’s decision to wait before raising interest rates, brokers said.
The two-year bond yielded 0.995% late Wednesday, from 0.954% late Tuesday. The 10-year bond yielded 1.807%, from 1.747%. Bond yields fall as their prices rise.
