CANADA FX DEBT-C$ near 4-year lows on expectations of dovish BoC
* Canadian dollar at C$1.0909 or 91.67 U.S. cents * Bond prices mostly lower across the maturity curve By Solarina Ho TORONTO, Jan 14 (Reuters) - The Canadian dollar was trading near its weakest level in four years against its U.S. counterpart on Tuesday as investors remained concerned ahead of next week's Bank of Canada interest rate decision and policy statement. The Canadian dollar extended losses after Canada's junior finance minister, Kevin Sorenson, said the country's manufacturing sector was happy with the weaker currency, adding that it presented "remarkable opportunities." The currency drifted modestly lower following data that showed U.S. consumer spending rose more than expected last month, which gave the greenback a moderate boost. But downward revisions of earlier months provided a mixed picture. "Retail sales number I don't think was a huge influence ... It was a bit of a wash, to be honest," said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets. Chandler said concerns about next week's central bank meeting was overhanging the currency. "There's a hanful of data between now and then for Canada, but none of which will move the needle too much. I expect the Canadian dollar will remain a bit vulnerable until we get to that point," he said, adding that none of the economic data until then are expected to be big movers. The Canadian dollar was at C$1.0909 to the greenback, or 91.67 U.S. cents around 9:25 a.m. (14:25 GMT), weaker than Monday's North American close at C$1.0846 to the greenback, or 92.20 U.S. cents. This was not far from the C$1.0946 hit on Friday, the currency's weakest level since October 2009, following a dismal December employment report. The jobs report fueled expectations the Bank of Canada will maintain its recent dovish stance, one of the factors that is seen keeping pressure on the loonie in 2014. Canadian government bond prices were mostly lower across the maturity curve, with the two-year bond down 3.5 Canadian cents to yield 1.052 percent and the benchmark 10-year down 17 Canadian cents to yield 2.566 percent.
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