By Commodity News Service Canada
WINNIPEG, September 11 – The Canadian dollar closed sharply lower against the US dollar on Thursday, losing nearly a full cent.
Strength in the US dollar, which was lifted by chart-based buying after it broke above a key resistance level against the Canadian dollar, was responsible for the loonie’s weakness, analysts said.
The Canadian dollar closed at US$0.9052 or US$1=C$1.1047 on Thursday, which compares with Wednesday’s North American settlement of US$0.9145 or US$1=C$1.0935.
Spillover pressure also came from recent declines in the value of the Australian New Zealand dollars, according to brokers.
Weakness in commodity prices, including gold and copper, further undermined the Canadian dollar, though strength in crude oil was supportive.
Canadian bonds ended higher on Thursday, following the gains seen in the US Treasury market, participants said.
The two-year bond yielded 1.143% late Thursday, from 1.151% late Wednesday. The 10-year bond yielded 2.192%, from 2.204%. Bond yields fall as their prices rise.
