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* C$ rises to C$0.9531 vs US dollar, or $1.0492
* Oil, U.S. stock futures up ahead of Fed meeting
By Claire Sibonney
TORONTO, April 26 (Reuters) - The Canadian dollar crept higher against its shaky U.S. counterpart on Tuesday as oil and other riskier assets advanced, but gains were limited ahead of a closely watched U.S. Federal Reserve policy meeting.
Oil bounced from early losses on low trading volumes, while U.S. stock index futures rose ahead of a big day for bellwether corporate earnings. [O/R] [.N]
The euro rose to a 16-month high against an under-pressure dollar, climbing around half a percent to $1.4653, with expectations the Fed will keep monetary policy loose likely to see it hover near recent peaks. [FRX/]
"Risk is still remaining reasonably well supported and that's keeping dollar/CAD pinned largely to the downside," said Jeremy Stretch, head of currency strategy at CIBC World Markets in London. He cautioned that direction was vulnerable to thin liquidity in another holiday-shortened week.
At 8:11 a.m. (1211 GMT), the Canadian dollar CAD=D4 stood at C$0.9531 to the U.S. dollar, or $1.0492, little changed from Monday's North American finish at C$0.9546 to the U.S. dollar, or $1.0476.
Stretch said that retesting the psychological barrier of C$0.9500 could open the way through C$0.9455, the 3-1/2 year low hit last week, though any pullback in commodity prices and nervousness about the broader risk rally could be negative for the Canadian dollar.
The Fed's meeting is expected to give no hint of tightening and markets are more focused on a news conference by Chairman Ben Bernanke on Wednesday, which is the first regularly scheduled briefing by a Fed chief in the central bank's 97-year history. [ID:nN20193559]]
"As far as the Fed is concerned, I think it will be more interesting to see how Mr. Bernanke keeps under the scrutiny of a press conference rather than necessarily the decision itself," said Stretch. (Editing by Padraic Cassidy)