By Commodity News Service Canada
WINNIPEG, Feb. 11 – The Canadian dollar closed lower against the US dollar on Wednesday, easing along with crude oil values, analysts said.
The oil market moved lower in reaction to recent news that US inventories of crude oil are at record high levels.
The Canadian dollar closed at US$0.7911 or US$1=C$1.2641 on Wednesday, which compares with Tuesday’s North American settlement of US$0.7953 or US$1=C$1.2574.
Speculation that the Bank of Canada will consider cutting interest rates further if economic growth problems persist was also bearish.
Investors were also shedding riskier assets, such as the Canadian currency, due to concerns about economic problems in the euro zone.
Canadian bonds ended lower on Wednesday, as traders took profits on recent gains amid a lack of fresh market moving news, brokers said.
The two-year bond yielded 0.435% Wednesday, from 0.427% late Tuesday. The 10-year bond yielded 1.440%, from 1.431%. Bond yields fall as their prices rise.
