By Commodity News Service Canada
WINNIPEG, June 4 – The Canadian dollar ended lower relative to the US dollar on Wednesday, reacting to the Bank of Canada’s decision to remain dovish and keep interest rates unchanged, analysts said.
The Canadian dollar closed at US$0.9142 or US$1=C$1.0939 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9166 or US$1=C$1.0910.
Some of the softness in the Canadian dollar was also linked to spillover pressure from the weakness in crude oil, gold and copper values.
Cautiousness ahead of Thursday’s policy announcement from the European Central Bank, which traders hope the Bank will introduce new stimulus measures, was bearish as well.
Traders were also looking ahead to as Canadian and US employment figures on Friday.
Canadian bonds closed mixed on Wednesday, reacting to the Bank of Canada’s dovish policy announcement, market watchers said.
The two-year bond yielded 1.064% late Wednesday, from 1.074% late Tuesday. The 10-year bond yielded 2.353%, from 2.341%. Bond yields fall as their prices rise.
