CANADA FX DEBT-C$ ends flat, but Carney reassures markets

Fri Aug 19, 2011 4:44pm EDT
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* C$ flat at C$0.9886 to the U.S. dollar, or $1.0115

* Bond prices lower after three-session surge

* Carney, Flaherty soothe on world economy, ready to act

* Poll: Next move in BoC monetary policy path is up (Adds details)

By Ka Yan Ng

TORONTO, Aug 19 (Reuters) - Canada's dollar ended nearly unchanged against the U.S. currency on Friday, reassured by top Canadian policymakers that they are ready to act if the world economy deteriorates dramatically.

It capped a relatively restrained week for the resource-linked currency, which saw some of its gains erased by weakness on equity markets.

"Canada-U.S. has been very much sort of driven by risk-on, risk-off; it's one of the most correlated currency pairs with respect to global equity news," said Mark Chandler, head of Canada fixed income and currency strategy at RBC Capital Markets.

The Canadian dollar CAD=D4 finished at C$0.9886 to the U.S. dollar, or $1.0115, virtually unchanged from Thursday's session close at C$0.9884 to the U.S. dollar, or $1.0117. It was up 0.2 percent on the week.   Continued...