CANADA FX DEBT-C$ lower ahead of BoC's Carney testimony

Tue Feb 10, 2009 8:58am EST
 
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TORONTO Feb 10 (Reuters) - The Canadian dollar was slightly weaker on Tuesday ahead of testimony from Bank of Canada Governor Mark Carney, with the U.S. dollar broadly firmer overnight ahead of a U.S. plan to shore up its ailing banks.

Still, the Canadian dollar was comfortably off an overnight low, as traders that initially flocked to the greenback overnight due to its status as a safe haven started to take on more risk.

At 9:50 a.m. (1450 GMT), the Canadian unit was at C$1.2222 to the U.S. dollar, or 81.82 U.S. cents, down from C$1.2164 to the U.S. dollar, or 82.21 U.S. cents, at Monday's close.

That was comfortably off the overnight low of C$1.2336 to the U.S. dollar, or 81.06 U.S. cents.

"The U.S. dollar this morning started to give back some of its gains ahead of the 11 a.m. announcement of the U.S. bailout plan and so that's contributing to the Canadian dollar strength we're seeing this morning," said George Davis, chief technical strategist at RBC Capital Markets.

Carney was scheduled to appear along with Senior Deputy Governor Paul Jenkins in front of the Standing Committee on Finance in Ottawa at 9:00 a.m.

In the United States, investors held out hope that Treasury Secretary Timothy Geithner would return some confidence in the financial system when he unveils a plan to relieve banks of money-losing assets. (Reporting by Frank Pingue; Editing by Jeffrey Hodgson)