Canadian forex review: C$ closes below 90 cents US

By Commodity News Service Canada

WINNIPEG, Jan. 27 – The Canadian dollar eased on Monday, closing just below the 90 cents US mark. Nervousness surrounding the upcoming US Federal Reserve decision about whether or not to ease stimulus measures further on Wednesday was behind some of the weakness, analysts said.

The Canadian currency closed at US$0.8999 or US$1=C$1.1112 on Monday, which compares with Friday’s North American settlement of US$0.9031 or US$=C$1.1073.

A sharp drop in commodity prices, including crude oil and gold, also spilled over to weigh on the value of the Canadian dollar.

Last week’s dovish Bank of Canada policy rate announcement continued to overhang the loonie.

Canadian bonds closed lower Monday amid profit-taking following recent gains and ahead the US Federal Reserve’s announcement on Wednesday, traders said.

The two-year bond yielded 0.994% late Monday, from 0.971% late Friday. The 10-year bond yielded 2.439%, from 2.409%. Bond yields fall as their prices rise.