By Commodity News Service Canada
WINNIPEG, Nov. 4 – The Canadian dollar was down sharply compared to the US dollar, falling to a five-year low in the wake of declining oil prices, which also hit multi-year lows on Tuesday, analysts said.
The Canadian dollar closed at US$0.8764 or US$1=C$1.1410 on Tuesday, which compares with Monday’s North American settlement of US$0.8805 or US$1=C$1.1357.
Concerns about slow economic growth in Europe and China were also bearish, as was last week’s news that the US Federal Reserve is ending their quantitative easing program.
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Though, positive Canadian trade data helped to limit the loonie’s downside. Statistics Canada reported Canada’s trade surplus was C$710 million in September, up from a deficit of C$463million in August. The improvement was linked to an increase in car and truck exports.
Canadian bonds closed higher on Tuesday, reacting to the positive Canadian trade data and taking direction from strength in the US Treasury market, brokers said.
The two-year bond yielded 0.984% late Tuesday, from 0.992% late Monday. The 10-year bond yielded 2.028%, from 2.040%. Bond yields fall as their prices rise.
