TORONTO: The Canadian dollar weakened modestly against the greenback on Thursday, with analysts expecting the currency to be stuck in a range following dovish comments from the central bank earlier this week.
At 8:12 a.m. EDT (1212 GMT), the Canadian dollar was trading down 0.1 percent at C$1.2969 to the greenback, or 77.11 US cents.
The currency's strongest level of the session was C$1.2946, while its weakest level was C$1.2979.
Investors were looking ahead to domestic reports on consumer debt and home sales later in the morning.
An increase in the price of oil helped cap declines in the loonie as crude followed global equity markets higher. US crude prices were up 0.49 percent at $61.26 a barrel, while Brent crude was 0.39 percent higher at $65.14.
Still, analysts expect it will be difficult for the Canadian dollar to make substantial gains in the short-term after comments from the head of the central bank suggested policymakers will take their time raising interest rates further.
The Canadian dollar "appears vulnerable to renewed near-term weakness," analysts at Scotiabank wrote in a note, though they expect to see strength into the spring and summer.
Canadian government bond prices were mixed across the maturity curve, with the two-year down 0.5 Canadian cent in price to yield 1.779 percent and the benchmark 10-year rising 4 Canadian cents to yield 2.156 percent.
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