CANADA FX DEBT-C$ little changed despite Canada rate cut

Tue Mar 3, 2009 5:39pm EST
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* C$ hits 77.07 U.S. cents before rebounding

* Bonds mostly higher, adjusting to Bank of Canada news

* Bank of Canada cuts overnight rate to 0.5 percent

* BoC may take extra steps to pump money into system (Updates to close)

By Ka Yan Ng

TORONTO, March 3 (Reuters) - The Canadian dollar fought back on higher oil prices to finish nearly unchanged on Tuesday after hitting a three-month low in the morning after the Bank of Canada cut interest rates to a record low.

The currency swung in a wide range, between C$1.2808 to the U.S. dollar, in the overnight session to a three-month low at C$1.2976 to the U.S. dollar at midmorning.

The Canadian dollar CAD= closed at C$1.2911 to the U.S. dollar, or 77.45 U.S. cents, compared with C$1.2914 to the U.S. dollar, or 77.44 U.S. cents, at Monday's close.

The Canadian dollar recovered as the price of oil edged higher above $41 a barrel. It often tracks the price of oil CLc1, a key Canadian export.   Continued...