By Commodity News Service Canada
WINNIPEG, March 11 – The Canadian dollar continued its downward spiral against the US dollar on Wednesday.
Much of the Canadian dollar’s weakness was linked to expectations that the US Federal Reserve will raise interest rates in June, according to analysts.
The Canadian dollar closed at US$0.7836 or US$1=C$1.2761 on Wednesday, which compares with Tuesday’s North American settlement of US$0.7886 or US$1=C$1.2680.
Ongoing worries about the negative impact recent weakness in crude oil values will have on Canada’s economy added to the bearish tone.
Canadian bonds moved higher on Wednesday, following the gains seen in the US Treasury market, participants said.
The two-year bond yielded 0.586% Wednesday, from 0.591% late Tuesday. The 10-year bond yielded 1.495%, from 1.527%. Bond yields rise as their prices fall.
