Canadian forex review: C$ drops below 95 cents US

By Commodity News Service Canada

WINNIPEG, Nov. 25 – The Canadian dollar closed lower against the US dollar on Monday, falling below the 95 cents US mark.

Much of the weakness in the Canadian dollar was linked to losses seen in crude oil values following a deal between Iran and world powers which may result in an increased supply of oil in the world, analysts said.

However, spillover support from the gains seen in other commodities, including gold and copper, helped to limit the loonie’s downside.

The Canadian currency was quoted at US$0.9480 or US$1=C$1.0548 at the close on Monday, which compares with Friday’s North American settlement of US$0.9502 or US$=C$1.0524.

There was no significant Canadian economic data reported on Monday. Traders were looking ahead to Canadian gross domestic product data on Friday.

Canadian bonds were mixed amid quiet activity, as traders were moving to the sidelines ahead of the US Thanksgiving holiday later this week, market watchers said.

The two-year bond yielded 1.107% late Monday, from 1.107% late Friday. The 10-year bond yielded 2.560%, from 2.577%. Bond yields fall as their prices rise.