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Canada dollar ends flat after ceding early gains

TORONTO:The Canadian dollar ended Tuesday's session near its previous closing level after US-dollar buying interest offset earlier strength in the Canadian unit.

Volumes remained thin and market sources said the Canadian currency's movements were driven by market flows and did not signify any new directions for the unit.

The Canadian dollar closed at C$1.4499 (68.97 US cents) on Tuesday from Monday's C$1.4492 (69.00 US close).

It rose to the C$1.4480 area early in North American trading and drifted around that level until early afternoon, when it weakened off again.

"There was one Canadian that seemed to have to buy a few (US) dollars, and that's all it took," said one currency trader with a major Canadian bank.

"It wasn't an aggressive amount or an aggressive action. (The currency) was a bit vulnerable. People were probably a little bit short from this morning and had to buy it back and here we are, it's as if today never happened," the trader said.

With some corporate market players still preoccupied with year-end-related activities, flows in the Canadian currency remained thin and sporadic, market watchers said.

"(There's) a bit of a lack of interest," the Toronto trader said.

"People are going to do what needs to be done. Probably into February (when) things are going to pick up again. It looks like (January is) going to be a quiet month," he said.

In cross-trading against major currencies, the Canadian dollar was at 72.82 yen and at C$1.4683 against the euro EURX. The Canadian dollar was at A$1.0347 against the Australian dollar. -Reuters