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Canadian dollar

closes easier

TORONTO: The Canadian dollar closed on Thursday deasier but still within range after failing to make gains on a strong US dollar and firm Canada bonds.

"Given the extent of the US dollar rally, Canadian price action was disappointing," said Nick Tsakoniatis at Citibank.

The US dollar soared to 1.42 German marks and 92.75 yen after a US government report showed inflationary pressures remain subdued.

But the Canada failed to follow the US dollar's pace, running into profit-taking at C$1.355 and then stop loss selling when the level held.

The Canada's failure to make further gains was considered even more diappointing given Canadian bonds, which firmed on Wednesday's cut in the call loan rate to a range of 6.25/6.75 percent.

Dealers said the unit benefitted in early trade from an unconfirmed rumour that the Quebecreferendum on separation from Canada could be delayed from a data -- still unannounced -- expected this fall.

Dealers said the unit continues stuck in its present range following today's activity, and little change is forecast overnight.

The Canadian dollar closed at C$1.3598 (US$0.7354) against C$1.3592 (US$0.7357). On the crosses, it climbed to 1.0439 marks from 1.0347 at Wednesday's close and to 68.20 yen from 67.42 yen.-Reuter