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Loonie trades in a range of 1.3752 to 1.3782

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BoC minutes show split among policymakers

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Price of oil settles 0.8% lower

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Bond yields fall across the curve

By Fergal Smith

TORONTO, Aug 13 (Reuters) - The Canadian dollar was

barely changed against its U.S. counterpart on Wednesday, as oil

prices fell and minutes from the Bank of Canada's latest policy

decision showed that policymakers were split on the need for

additional interest rate cuts.

The loonie was trading nearly unchanged at 1.3770 per

U.S. dollar, or 72.62 U.S. cents, after moving in a range of

1.3752 to 1.3782.

Deliberations of the Bank of Canada's Governing Council in

July, when the benchmark rate was left unchanged at 2.75%,

showed that the central bank was divided on how much monetary

policy could aid growth under current economic conditions that

are shaped by U.S. tariffs.

"There's a split in the Governing Council, with some members

believing that rates may not need to fall further," Benjamin

Reitzes, Canadian rates & macro strategist at BMO Capital

Markets, said in a note. "Other members highlighted that

persistent slack and ongoing labour market softness could

warrant further easing."

Investors see a 33% chance that the BoC eases at the next

policy decision on September 17. That's up from 17% at the start

of the month, after expectations rose that the Federal Reserve

would resume its easing campaign and the release of

weaker-than-expected domestic jobs data.

The price of oil settled 0.8% lower at $62.65 a

barrel after U.S. crude supply unexpectedly rose. Oil is one of

Canada's major exports.

In a potential blow to Canada's economy, Air Canada ( ACDVF )

is cancelling flights from Thursday. The country's largest

carrier is winding down service ahead of a looming Saturday

strike by its more than 10,000 flight attendants.

Canadian bond yields moved lower across the curve, tracking

moves in U.S. Treasuries. The 10-year was down

4.7 basis points at 3.388%.