By Commodity News Service Canada
WINNIPEG, Nov. 17 – The Canadian dollar ended lower relative to the US dollar on Monday amid signs that Japan’s economy is moving back into a recession, analysts said.
Japanese data showed the country’s economy slowed at a pace of 1.6 per cent due to a sales tax hike reducing housing and business investments, according to a report.
The Canadian dollar closed at US$0.8853 or US$1=C$1.1296 on Monday, which compares with Friday’s North American settlement of US$0.8868 or US$1=C$1.1277.
Strength in the US dollar index and weakening crude oil and other commodity prices were also behind the softening Canadian currency.
Canadian bonds closed slightly higher on Monday, as traders were squaring positions ahead of key inflation data for both Canada and the US later this week, brokers said.
The two-year bond yielded 1.007% late Monday, from 1.010% late Friday. The 10-year bond yielded 2.023%, from 2.034%. Bond yields fall as their prices rise.
