CANADA FX DEBT-C$ weakens after Poloz named to head Bank of Canada

Thu May 2, 2013 5:38pm EDT
 
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* C$ at C$1.0083 to the US$, or 99.18 U.S. cents

* Stephen Poloz named as next governor of Bank of Canada

* Poloz had been seen as 2nd most likely candidate

* Surprise hits currency, but policy seen steady

By Alastair Sharp

TORONTO, May 2 (Reuters) - The Canadian dollar weakened late on Thursday against its U.S. counterpart after the Canadian government surprised investors by naming Stephen Poloz, head of the country's export credit agency, as the new governor of the central bank.

Poloz, who spent 14 years at the Bank of Canada earlier in his career, had been widely seen as the second most likely pick, with Bank of Canada senior deputy Tiff Macklem the favored candidate. Poloz has been at Export Development Canada since 1999 and its president since 2010.

"At the very least, there's a little bit of uncertainty over policy which could lead to a little bit of a chipping away at the currency," said Doug Porter, chief economist at BMO Capital Markets. "We have seen the currency soften ever so slightly in the minutes since the announcement."   Continued...