TORONTO: The Canadian dollar was slightly weaker against its US counterpart on Thursday, as traders sold on any sign of strength in the Canadian unit, with a weak oil price blunting enthusiasm for the resource-linked currency.
The loonie, as Canada's currency is colloquially known, has settled into a tighter range in recent sessions after a sharp weakening last week.
"The oscillation between C$1.13 and C$1.14 since the payroll numbers has really been in play...there were no legs to take dollar/Canada below C$1.1280," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
Spitz said "the directional bias by most traders is to buy the dips" mostly on the softness in the price of oil, a major Canadian export.
The Canadian dollar was last seen trading at C$1.1330 to the greenback, or 88.26 US cents, weaker than Wednesday's close of C$1.1316, or 88.37 US cents.
Legislation to approve the controversial Keystone XL oil pipeline began racing through the US Congress on Wednesday, eventual approval of which would likely boost the loonie.
"Any positive changes with respect to improving the efficiency of oil flow from Canada to the US are likely to be seen as a positive for the Canadian dollar," Spitz said.
Canadian government bond prices were flat to slightly higher across the maturity curve, with the two-year unchanged to yield 1.1015 percent and the benchmark 10-year up 4 Canadian cents to yield 2.057 percent.
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