Canadian dollar near flat as oil prices dip, greenback stabilizes

TORONTO (Reuters) - The Canadian dollar was nearly unchanged on Tuesday against its U.S. counterpart as oil prices slipped from two-month highs, while the greenback stabilized a day after being pressured by political turmoil in Washington.

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

U.S. crude CLc1 prices were down 0.76 percent at $49.79 a barrel as ample global supplies countered strong demand and forecasts of another drop in U.S. crude inventories.

The U.S. dollar .DXY edged higher against a basket of major currencies.

On Monday it fell to its lowest since May 2016 following news that the White House’s communications director was leaving the post after 10 days.

At 9:10 a.m. ET (1310 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at C$1.2481 to the greenback, or 80.12 U.S. cents.

The currency traded in a range of C$1.2452 to C$1.2512, after hitting on Thursday its strongest in more than two years at C$1.2414.

It has jumped more than 10 percent since early May, including a 3.9 percent gain last month when the Bank of Canada raised interest rates for the first time in nearly seven years.

The Bank of Canada has signaled it is comfortable with market expectations that another rate hike won’t happen until October, analysts said.

Canadian government bond prices were mixed across a steeper yield curve, with the two-year CA2YT=RR up 1.5 Canadian cents to yield 1.308 percent and the 10-year CA10YT=RR falling 1 Canadian cent to yield 2.057 percent.

The 10-year yield touched on Monday its highest intraday level since November 2014 at 2071 percent.

Both Canadian and U.S. jobs data for July and domestic trade data for June are due on Friday. ECONCA

Reporting by Fergal Smith; Editing by W Simon