C$ flat versus U.S. dollar as Turkey jitters fade, oil dips

Mon Jul 18, 2016 9:23pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - The Canadian dollar ended unchanged against its U.S. 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 CAD=D4 settled at C$1.2937 to the greenback, or 77.30 U.S. 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.   Continued...

 
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015.  REUTERS/Mark Blinch