Canadian Forex/Bond Review: C$ Hits Lowest Point In 11 Years

By Commodity News Service Canada

Winnipeg, August 24 – The Canadian dollar plummeted in value relative to its US counterpart Monday, weighed down after the Chinese stock market recorded massive losses.

At 4:00 CDT Monday, the loonie was at US$0.7536 or US$1 = C$1.3269.

Investors sought safe havens as the loonie hit an 11-year low.

Collapsing crude oil prices pressured the dollar while lingering concerns about economic growth as a whole also proved bearish.

The absence of any major Canadian economic data this week also served to highlight the impact of the crash, said a trader.

However, Canadian bonds finished higher Monday as investors sought fixed-term assets.

Canada’s two-year bond yield was at 0.323% Monday, down from 0.336% late Friday, according to electronic trading platform CanDeal. The 10-year bond yield was at 1.266%, down from 1.270%. Bond yields move inversely to prices.

Equity markets were hit hard however as fears that China’s economy will slow significantly gripped the market.