The Canadian dollar on Monday was on track to end 2018 with its worst performance in three years, little changed on the day against its US counterpart as gains for stocks offset a decline in oil prices. Stocks were boosted by signs of progress in the US-China trade dispute. Canada runs a current account deficit and exports many commodities, including oil, so its economy benefits from an unfettered global flow of trade.

US crude oil futures were down 0.6 percent at $45.08 a barrel on persisting concerns of a supply glut. The price of oil has fallen more than 40 percent since October, which has worried the Bank of Canada.

The central bank has raised interest rates five times since July 2017 to leave its benchmark interest rate at 1.75 percent. But money markets do not expect any further increases in 2019.

At 10:14 a.m. (1514 GMT), the Canadian dollar was trading nearly unchanged at 1.3643 to the greenback, or 73.30 US cents. The currency, which on Friday touched its lowest intraday in 19 months at 1.3662, traded in a range of 1.3610 to 1.3648.

For the year, the loonie was down 7.8 percent, its first decline since 2015.

The US dollar edged lower in thin year-end trading as increased risk appetite weighed on demand for safe haven currencies.

Canadian government bond prices were higher across much of a steeper yield curve, with the two-year up 2.5 Canadian cents to yield 1.848 percent and the 10-year rising 5 Canadian cents to yield 1.950 percent.

In earlier trading, the two-year yield fell to its lowest since June 29 at 1.846 percent.

Canada's bond market will close early ahead of the New Year's Day holiday. The country's employment report for December is due on Friday.

Copyright Reuters, 2019