Loonie absorbs minimal impact from debt deal

The value of the Canadian dollar stalled against its southerly rival on Tuesday as the euphoria faded after Greece finally won approval for its second tranche of emergency bailout aid since June 2010, according to Reuters.

Euro zone finance ministers granted final approval on Tuesday, but enthusiasm ebbed as traders contemplated the severity of the austerity measures that Greece must implement under the terms of the agreement.

"There seem to be some reservations really about possibly the implementation near term ... and the parameters that we saw in the package overall are not that far from what the market really expected," currency strategy global head Adam Cole with RBC Capital Markets in London told Reuters.

Dow Jones Newswires reports the loonie initially gained against the dollar during Tuesday's session but concerns for the tenuous bailout tranche drove investors toward the world's reserve currency.

Retail sales in Canada dropped 0.2 percent during the final month of last year, but that did not have strong an impact on the value of the monetary unit, Dow Jones Newswires reports.