By Commodity News Service Canada
WINNIPEG, September 17 – The Canadian dollar closed lower on Wednesday, reacting to the latest interest rate announcement from the US Federal Reserve, analysts said.
The US Federal Reserve left its interest rate outlook unchanged on Wednesday, but highlighted that the economy in the US is showing signs of improvement.
The Canadian dollar closed at US$0.9088 or US$1=C$1.1004 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9116 or US$1=C$1.0970.
Cautiousness ahead of Thursday’s independence referendum in Scotland was also putting some downward pressure on the Canadian currency.
Spillover from the declines seen in commodity prices, including crude oil, gold and copper, added to the bearish tone.
Canadian bonds ended lower, following the US Treasury market on Wednesday, as both markets reacted to the US Federal Reserve announcement, brokers said.
The two-year bond yielded 1.165% late Wednesday, from 1.149% late Tuesday. The 10-year bond yielded 2.265%, from 2.243%. Bond yields fall as their prices rise.
