TORONTO: The Canadian dollar was little changed against its US counterpart on Tuesday as higher oil prices offset increased uncertainty over trade talks this week between the United States and China.
US officials announced criminal charges against China's Huawei Technologies Co Ltd
that could upset the US-China talks, which are part of negotiations intended to walk back trade tensions between the world's two largest economies.
Canada is running a current account deficit and exports many commodities, including oil, so its economy could be hurt by a reduction in the global flow of trade or capital.
The price of oil, one of Canada's major exports, rose after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the OPEC member's crude exports. US crude oil futures were up 2.8 percent at $53.42 a barrel.
At 9:44 a.m. (1444 GMT), the Canadian dollar was trading nearly unchanged at 1.3259 to the greenback, or 75.42 US cents.
The currency, which on Monday touched its strongest intraday in more than two weeks at 1.3204, traded in a range of 1.3246 to 1.3278.
The steady profile for the loonie came as foreign exchange traders awaited crucial parliamentary votes in Britain later in the day that are aimed at breaking the Brexit deadlock.
The currency market could also take its cue this week from Wednesday's interest rate decision by the US Federal Reserve.
The Fed is expected to acknowledge growing risks to the US economy as global momentum weakens.
Canadian government bond prices edged lower across the yield curve, with the two-year
price down 1 Canadian cent to yield 1.879 percent and the 10-year
falling 2 Canadian cents to yield 1.966 percent.
Canada's gross domestic product data for November is due on Thursday.
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