By Commodity News Service Canada
WINNIPEG, September 25 – The Canadian dollar ended sharply lower on Thursday, settling just above the 90 cents US mark.
Continued strength in the value of the US dollar, amid positive employment data and ideas that interest rates will be upped in the country soon weighed on the Canadian currency, analysts said.
The Canadian dollar closed at US$0.9003 or US$1=C$1.1108 on Thursday, which compares with Wednesday’s North American settlement of US$0.9044 or US$1=C$1.1057.
Concerns about slow economic growth in Europe and China, and the resulting risk aversion, further undermined the Canadian currency.
Dovish comments from the Bank of Canada earlier in the week continued to weigh on the loonie, as did softness in crude oil values.
Canadian bonds ended higher, following other bond markets as traders were buying more safe-haven assets amid global economic worries, market watchers said.
The two-year bond yielded 1.123% late Thursday, from 1.145% late Wednesday. The 10-year bond yielded 2.150%, from 2.202%. Bond yields fall as their prices rise.
