By Commodity News Service Canada
WINNIPEG, Feb. 4 – The Canadian dollar closed lower relative to the US dollar on Wednesday, giving back some of Tuesday’s sharp gains.
The Canadian dollar closed at US$0.7959 or US$1=C$1.2565 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8067 or US$1=C$1.2396.
The Canadian dollar was also dragged down by falling crude oil prices, and ongoing worries about the negative effects it will have on Canada’s economy, analysts said.
Worries about slow global economic growth, political turmoil and positive data out of the US were also bearish for the loonie.
Canadian bonds ended slightly higher on Wednesday, outpacing US markets. Support for Canadian bonds came from speculation that the Bank of Canada may consider cutting interest rates even further, brokers said.
The two-year bond yielded 0.415% Wednesday, from 0.434% late Tuesday. The 10-year bond yielded 1.307%, from 1.313%. Bond yields fall as their prices rise.
