Canadian forex review: C$ weakens

By Commodity News Service Canada

WINNIPEG, Oct. 29 – The Canadian dollar was weaker compared to its US counterpart on Tuesday, undermined by comments from Bank of Canada Governor Stephen Poloz that stimulus measures will remain in place for a longer period of time in Canada, analysts said.

The Canadian currency was quoted at US$0.9551 or US$1=C$1.0470 at the close on Tuesday, which compares with Monday’s North American close of US$0.9574 or US$=C$1.0445.

Weakness seen in commodities, including crude oil and gold, also spilled over to weigh on the value of the Canadian currency.

Canadian bonds were higher, as traders were looking to safe-haven assets due to Poloz’s confirmation that the Bank of Canada is taking a more dovish stance, traders said.

The two-year bond yielded 1.092% late Tuesday, from 1.089% late Monday. The 10-year bond yielded 2.409%, from 2.426%. Bond yields fall as their prices rise.