By Commodity News Service Canada
WINNIPEG, August 5 – The Canadian dollar finished sharply lower relative to the US dollar on Tuesday, undermined by spillover pressure from weakness seen in crude oil prices, analysts said.
The Canadian dollar closed at US$0.9124 or US$1=C$1.0960 on Tuesday, which compares with Friday’s North American settlement of US$0.9152 or US$1=C$1.0926. Canadian markets were closed for a Civic Holiday on Monday.
A broad move higher in the US dollar after the release of positive US economic data was also bearish for the loonie. The Institute for Supply Management’s non-manufacturing index climbed to 58.7 in July, which was above expectations that it would climb to 56.5.
A lack of interest in buying riskier assets, including the Canadian dollar, due to ongoing geopolitical concerns, further undermined the currency.
Canadian bonds ended mixed on Tuesday as traders weighed buying interest linked to geopolitical worries against bearish strong US data, brokers said.
The two-year bond yielded 1.077% late Tuesday, from 1.073% late Friday. The 10-year bond yielded 2.112%, from 2.116%. Bond yields fall as their prices rise.
