TORONTO: The Canadian dollar ended unchanged against its US counterpart on Monday as the market brushed off the news of a purge after a failed coup in Turkey and oil prices fell.
The loonie, as Canada's currency is colloquially known, gained against the safe-haven Japanese yen and Swiss franc, but lost ground against emerging market currencies, including Mexico's peso and Russia's ruble.
Turkey detained or suspended nearly 20,000 members of the police, army, judiciary and civil service following last Friday's violence.
Oil prices fell as rising stockpiles of crude and refined fuel intensified fears another major glut was building up.
"The market seems to be looking through the failed military coup in Turkey and risk assets continue to perform relatively well," said Blake Jespersen, managing director, foreign exchange sales at BMO Capital Markets. "It was a short-lived selloff."
The Canadian dollar settled at C$1.2937 to the greenback, or 77.30 US cents, the same level the currency closed at on Friday.
The currency's strongest level of the session was C$1.2927, while its weakest was C$1.3023.
The loonie rose 0.8 percent last week as a somewhat optimistic update from the Bank of Canada lowered expectations for an interest rate cut.
Jespersen said he is "not really looking for the Canadian dollar to slide a whole lot further from here" following the central bank's outlook, with C$1.3050 likely proving tough to breach in the short term.
The implied probability of a rate cut this year has fallen below 10 percent, overnight index swaps data showed. It had been above 30 percent in the week following the British referendum vote on June 23 to leave the European Union.
Foreign investors snapped up relatively large amounts of Canadian securities for the fifth month in a row in May, Statistics Canada said on Monday.
Speculators increased bullish bets on the loonie for the third straight week, Commodity Futures Trading Commission data showed on Friday.
Canadian government bond prices were flat to slightly lower across the maturity curve on Monday, with the two-year price down 0.2 of a Canadian cent to yield 0.579 percent and the benchmark 10-year fell 15 Canadian cents to yield 1.098 percent.
Canadian small business lending picked up slightly in May to halt a five-month slide, PayNet data showed, but appetite for loans remained subdued and a measure of delinquencies hit its highest since 2011.
Canadian retail sales data for May and inflation data for June are awaited on Friday.
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