By Commodity News Service Canada
WINNIPEG, Nov. 19 – The Canadian dollar ended sharply weaker against the US dollar on Wednesday, as the US Senate voted against the Keystone XL Pipeline project Tuesday night, analysts said.
The Canadian dollar closed at US$0.8810 or US$1=C$1.1351 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8850 or US$1=C$1.1299.
Weakness in commodity prices was also weighing on the loonie, including crude oil and gold, market watchers said.
However, some support came from US Federal Reserve meeting minutes Wednesday afternoon, as they noted recent slow economic developments in Europe, China and Japan are likely to have limited effects.
Canadian bonds closed lower on Wednesday, as the US Federal Reserve meeting minutes highlighted a positive outlook for the US economy, causing investors to move away from “safe-haven” assets, brokers said.
The two-year bond yielded 1.027% late Wednesday, from 1.003% late Tuesday. The 10-year bond yielded 2.035%, from 1.996%. Bond yields fall as their prices rise.
