CANADA FX DEBT-C$, bond yields rise on Bank of Canada surprise
* Bank of Canada avoids immediate money expansion
* C$ finishes at 81.71 U.S. cents
* Bond prices mostly drop after bank report
* Canada retail sales edge up 0.2 percent in Feb (Adds details, quotes)
By Jennifer Kwan
TORONTO, April 23 (Reuters) - The Canadian dollar strengthened but bond prices tumbled on Thursday after the Bank of Canada surprised markets by indicating it is in no rush to use unconventional policies to spur the slumping economy
The bank provided an outline on how it might go about boosting the money supply by purchasing financial assets, also known as quantitative easing, but it said it needed to be prudent and would not be taking any such steps immediately. [ID:nN23255456] [ID:nN23361342]
The currency shot as high as C$1.2227 to the U.S. dollar, or 81.79 U.S. cents, from C$1.2360 to the U.S. dollar, or 80.91 U.S., before the release of the Monetary Policy Report.
"What we've seen today is that the market had partially priced in some credit easing and even minor quantitative easing. But what we got was absolutely nothing," said Matthew Strauss, senior currency strategist RBC Capital Markets. Continued...