By Commodity News Service Canada
WINNIPEG, March 10 – The Canadian dollar closed sharply weaker relative to the US dollar on Tuesday, following the losses seen in crude oil values, analysts said.
The Canadian dollar closed at US$0.7886 or US$1=C$1.2680 on Tuesday, which compares with Monday’s North American settlement of US$0.7939 or US$1=C$1.2596.
Ongoing expectations that the US Federal Reserve will decide to raise interest rates soon further undermined the Canadian currency.
Monday’s disappointing Canadian housing starts data also continued to overhang the loonie, as did broad strength in the US dollar.
Canadian bonds moved higher on Tuesday, as buyers moved into safe haven assets as the European Central Bank’s new stimulus program came into effect, brokers said.
The two-year bond yielded 0.595% Tuesday, from 0.603% late Monday. The 10-year bond yielded 1.545%, from 1.569%. Bond yields rise as their prices fall.
