CANADA FX DEBT-C$ ends slightly lower in volatile session

Wed Apr 22, 2009 4:40pm EDT
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* Canadian dollar ends at 80.65 U.S. cents

* Bond prices mixed across the curve

* Market focus on Thursday's Monetary Policy Report (Adds details, quote)

By Jennifer Kwan

TORONTO, April 22 (Reuters) - The Canadian dollar was slightly lower against the U.S. dollar on Wednesday, after tracking equity and oil markets through a volatile session, as investor were reluctant to make major bets ahead of a key Bank of Canada report.

The market is expected to pay close attention to the central bank's Monetary Policy Report, due on Thursday morning, which will outline a potential framework for unconventional policy measures, such as printing money to buy securities, often referred to as quantitative easing.

"Tomorrow is a very significant day for the Canadian economy and the Canadian dollar because, depending on what the bank says in terms of what position, or framework, it would adopt for unconventional monetary policy that would have implications for the Canadian dollar," said Millan Mulraine, economics strategist at TD Securities.

The Canadian dollar finished at C$1.2400 to the U.S. dollar, or 80.65 U.S. cents, down from Tuesday's finish at C$1.2363 to the U.S. dollar, or 80.89 U.S. cents.

The currency, which touched an early low of C$1.2477 to the U.S. dollar, or 80.15 U.S. cents swung higher by midday as North American stock markets rebounded from a tentative start and climbed along with commodity prices.   Continued...