TORONTO: The Canadian dollar was slightly stronger against its US counterpart on Monday despite renewed weakness in oil prices, with a lack of liquidity and last week's significant weakening leading to a tight trading range.
At 9:01 a.m. EST (1401 GMT), the Canadian dollar was trading at C$1.3925 to the greenback, or 71.81 US cents, stronger than Friday's close of C$1.3945, or 71.71 US cents.
The currency's strongest level of the session so far was C$1.3914, while its weakest level was C$1.3969.
The US currency slipped against a basket of currencies after data from the Chicago Federal Reserve suggested the US economy grew at a below average pace in November.
Bank of Canada Governor Stephen Poloz told Reuters on Friday that the currency and the price of oil move "like a pair of train tracks" and trying to stop exchange rates from shifting could hinder the economy's ability to absorb shocks.
Brent crude prices hit their lowest in more than 11 years on Monday, hounded by a relentless rise in global supply that looks set to outpace demand again next year.
US crude prices were down 0.55 percent to $34.54 a barrel while Brent crude lost 1.41 percent to $36.36.
Canadian government bond prices were higher across the maturity curve, with the two-year price up 2 Canadian cents to yield 0.491 percent and the benchmark 10-year rising 20 Canadian cents to yield 1.377 percent.
The Canada-US two-year bond spread was -45.9 basis points while the 10-year spread was -79.8 basis points.
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