By Commodity News Service Canada
WINNIPEG, September 22 – The Canadian dollar was sharply lower relative to the US dollar on Monday, reacting to a speech from Bank of Canada Senior Deputy Carolyn Wilkins Monday afternoon, analysts said.
Wilkins said the Bank of Canada isn’t looking to change its neutral policy towards interest rates any time soon during Monday’s speech.
The Canadian dollar closed at US$0.9065 or US$1=C$1.1031 on Monday, which compares with Friday’s North American settlement of US$0.9135 or US$1=C$1.0947.
Spillover pressure from the weakness in commodities, as well as other commodity-based currencies, also weighed on the loonie, traders said.
Canadian bonds ended higher, outpacing the US Treasury market. The Canadian bond market was reacting to the speech from the Bank of Canada on Monday afternoon, brokers said.
The two-year bond yielded 1.156% late Monday, from 1.173% late Friday. The 10-year bond yielded 2.220%, from 2.250%. Bond yields fall as their prices rise.
