The Canadian dollar eased against the US currency on Thursday in lethargic trading conditions, but it remained at elevated levels based on Canada's strong economic fundamentals. In a very quiet start to the North American session, the currency was at C$1.1967 to the US dollar, or 83.56 US cents, down from Wednesday's closing level at C$1.1940 to the US dollar, or 83.75 US cents.
Some Canadian and US markets were closed on Thursday for Remembrance Day and Veterans Day holidays, including the Canadian bond market, and foreign exchange trading was expected to be light.
The currency has moved in a band between C$1.19 and C$1.20 to the US dollar for the past four sessions.
"The range has been fairly limited. In the absence of anything Canada-specific, we're still keeping an eye on the broader market and dollar trends," said Drew Devine, trader at Investors Bank & Trust in Boston.
The US budget and current account deficits have been the main sources of pressure on the US currency in recent weeks, allowing the Canadian dollar to rise nearly 9 percent since mid-September. It climbed briefly above 84 US cents earlier this week.
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