Canadian dollar flat as market takes a breather

Wed Sep 24, 2008 4:39pm EDT
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* Canadian dollar dips 0.04 percent vs greenback

* Bond prices track larger U.S. market higher

* Speech by Bank of Canada governor focus for Thursday

By John McCrank

TORONTO, Sept 24 (Reuters) - The Canadian dollar was little changed against the U.S. dollar in quiet trading on Wednesday, while bond prices tracked the larger U.S. market higher ahead of Thursday's speech by the governor of the Bank of Canada.

The Canadian unit ended the North American session at C$1.0367, or 96.46 U.S. cents, from C$1.0363, or 96.50 U.S. cents, at Tuesday's close.

The currency spent the day in a relatively tight range of C$1.0313 to C$1.0375, after intraday moves of well over 1 percent most days in the past couple weeks.

"If anything, the market needs a breather and, today, with the lack of catalysts, would seem a reasonable day to take one," said Shane Enright, currency strategist at CIBC World Markets.

The U.S. government's proposed $700 billion plan to rescue the country's battered financial sector was still in focus throughout the day, but the effects it might have on the U.S. dollar were largely priced in already, said Enright.   Continued...