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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%.