Canadian Dollar slips after BoC comments on FX, rates

LONDON (Reuters) - The Canadian dollar fell to a session low on Wednesday after the Bank of Canada repeated its conditional pledge to hold interest rates at their current low level until mid-2010 and said the strong Canadian dollar is a risk to growth.

The U.S. dollar rose as high as C$1.0703, according to Reuters data, up slightly on the day and up around 20 ticks from just before the Bank of Canada headlines appeared.

The U.S. dollar's brief rise above C$1.07 meant that any currency option knock outs at that level were taken out, and the greenback eased back down to C$1.0680.

Traders reported options expiries later on Wednesday at C$1.0700 worth at least C$100 million, and a further C$200 million at C$1.0650.