By Commodity News Service Canada
WINNIPEG, March 30 – The Canadian dollar was down sharply against the US dollar on Monday, following the weakness seen in crude oil values, analysts said.
Oil is one of Canada’s biggest export commodities, so weakness in prices is unfavourable for the country’s economy, brokers added.
The Canadian dollar closed at US$0.7878 or US$1=C$1.2693 on Monday, which compares with Friday’s North American settlement of US$0.7937 or US$1=C$1.2600.
General strength in the US dollar index, and a lack of risk sentiment in the currency markets, added to the bearish tone, traders added.
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However, positive Canadian economic data limited the downside. Statistic Canada said the industrial price product index rose 1.8 per cent in February, beating expectations of a 0.5 per cent jump.
Traders were looking ahead to Tuesday morning’s Canadian gross domestic product figures from Statistics Canada. Pre-report expectations call for GDP to fall by 0.2 per cent for January.
Canadian bonds ended mixed on Monday, as the US Treasury market was also mixed after a day of quiet activity, participants said.
The two-year bond yielded 0.508% Monday, from 0.524% late Friday. The 10-year bond yielded 1.374%, from 1.371%. Bond yields rise as their prices fall.
