TORONTO: The Canadian dollar was little changed against the greenback on Tuesday, maintaining this week's narrow range as domestic data showed that housing starts unexpectedly fell in August and talks to renew the NAFTA trade pact were set to resume.
Canadian Foreign Minister Chrystia Freeland will meet US Trade Representative Robert Lighthizer in Washington for another round of talks on the North American Free Trade Agreement, an official said on Monday, as time runs short to seal a deal.
Canada sends about 75 percent of its exports to the United States, so its economy could be hurt if a deal is not reached.
Canadian housing starts declined to a seasonally adjusted annualized rate of 200,986 units from a revised 205,751 units in July, data from the Canada Mortgage and Housing Corporation showed.
At 8:59 a.m. (1259 GMT), the Canadian dollar was trading nearly unchanged at C$1.3170 to the greenback, or 75.93 US cents.
The currency, which was also little changed on Monday, traded in a tight range of C$1.3132 to C$1.3175. On Thursday, it touched its weakest in nearly seven weeks at C$1.3226.
World stocks slipped back towards three-week lows on concerns over the trade dispute between Washington and Beijing.
Canada exports many commodities and runs a current account deficit, so its economy depends on the global flow of trade and capital.
The price of oil, one of Canada's major exports, edged higher as US sanctions squeezing Iranian crude exports tightened global supply. US crude prices were up 0.4 percent at $67.78 a barrel.
Canadian government bond prices were lower across the yield curve in sympathy with US Treasuries. The two-year dipped 2 Canadian cents to yield 2.117 percent and the 10-year
declined 18 Canadian cents to yield 2.307 percent.
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