By Commodity News Service Canada
WINNIPEG, June 2 – The Canadian dollar ended lower relative to the US dollar on Monday, as traders were less willing to take on riskier assets ahead of a key Bank of Canada announcement later this week, analysts said.
The Bank of Canada releases its latest policy statement on Wednesday, with some traders expecting they will keep the interest rate unchanged at one per cent.
The Canadian dollar closed at US$0.9176 or US$1=C$1.0898 on Monday, which compares with Friday’s North American settlement of US$0.9223 or US$1=C$1.0842.
Spillover pressure from the weakness in commodity prices, including crude oil and gold, was also bearish for the value of the Canadian currency.
Canadian bonds closed lower, following the declines seen in the US Treasury market on Monday, industry officials said.
The two-year bond yielded 1.062% late Monday, from 1.048% late Friday. The 10-year bond yielded 2.285%, from 2.244%. Bond yields fall as their prices rise.
