TORONTO: The Canadian dollar was little changed against the greenback on Monday as stronger risk appetite in financial markets broadly was offset by data that showed foreign investors were net sellers of Canadian securities in June.
The loonie was expected to trade in a range in the near term with Canadian inflation and retail sales data due on Friday, and with the annual gathering of central bankers and economists in Jackson Hole getting underway later in the week.
The currency lost some steam after data showed foreign investors sold a net C$1.07 billion ($0.98 billion) worth of Canadian securities in June.
Still, the loonie found some support as markets were less worried about tensions in Ukraine following an escalation on Friday. Ukraine had said its artillery had hit a Russian armored column, while Russia denied its forces had crossed into Ukraine.
"We've got a little bit of the potential for stability in the geopolitical spectrum this morning," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary.
"Russia is so interconnected with the developed world economy, if that situation can get ironed out, that would be a positive for growth correlated assets."
The Canadian dollar was at C$1.0890 to the greenback, or 91.83 US cents, a hair weaker than Friday's close of C$1.0889, or 91.84 US cents.
The loonie was also helped by some positive follow-through from Friday's restated Canadian jobs numbers that showed the economy added far more jobs in July than had been initially erroneously reported.
"It's still a mediocre labor market picture for the Canadian economy, but a little more optimism there. It's not as though it's in dire straits as was previously assumed," said Smith.
For the session, the Canadian dollar is likely to trade in a range between C$1.921 and C$1.0860 to C$1.0850, he said.
Canadian government bond prices were lower across the maturity curve, with the two-year off 3.3 Canadian cents to yield 1.069 percent and the benchmark 10-year down 24 Canadian cents to yield 2.046 percent.
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