CANADA FX DEBT-C$ flat ahead of Bank of Canada rate decision

Mon Jul 19, 2010 4:56pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ ends at 94.80 U.S. cents, dips from Friday's close

* Bonds mixed, short bonds rise in safety bid

* Bank of Canada expected to raise key rate on Tuesday (Updates to close)

By Ka Yan Ng

OTTAWA, July 19 (Reuters) - Canada's dollar was little changed versus its U.S. counterpart on Monday as investors were reluctant to take on new risk ahead of Tuesday's Bank of Canada rate decision and its outlook on the economy.

The central bank is widely expected to raise interest rates by 25 basis points to 0.75 percent, but market players are more focused on what the bank will say about Canada's economic prospects, given the uneven global economic recovery. [CA/POLL]

"If there's no verbiage to support further rate hikes don't look for (the Canadian dollar) to strengthen too much," said John Curran, senior vice-president at CanadianForex, a commercial foreign exchange firm.

The Canadian dollar CAD=D4 finished at C$1.0549 to the U.S. dollar, or 94.80 U.S. cents, down from C$1.0546 to the U.S. dollar, or 94.82 U.S. cents, at Friday's close.

Earlier it had fallen as low as C$1.0580, or 94.52 U.S. cents, matching its low point on Friday when it slumped to its weakest level since July 7. It briefly unwound its losses as it tracked U.S. equity prices higher, then settled into a slim range of 25 basis point in the afternoon.   Continued...