By Commodity News Service Canada
WINNIPEG, August 25 – The Canadian dollar was lower relative to the US dollar on Monday, undermined by continued strength in the value of the US currency, analysts said.
The US dollar was stronger, as it was reacting to expectations that the US Federal Reserve will raise interest rates sooner than first thought.
The Canadian dollar closed at US$0.9107 or US$1=C$1.0971 on Monday, which compares with Friday’s North American settlement of US$0.9137 or US$1=C$1.0945.
Weakness in commodities, including crude oil and gold, also accounted for some of the loonie’s downward slide, participants said.
Traders were reacting to news that Tim Hortons and Burger King may merge to make one company while looking ahead to GDP data from Statistics Canada on Friday.
Canadian bonds ended higher on Monday, reacting to positive remarks from Bank of Canada governor Stephen Poloz over the weekend, traders said.
The two-year bond yielded 1.090% late Monday, from 1.094% late Friday. The 10-year bond yielded 2.042%, from 2.075%. Bond yields fall as their prices rise.
