CANADA FX DEBT-C$ weakens as Fed banker points to rates staying low
* C$ at C$1.0441 vs US$, or 95.78 U.S. cents * Fed official's comments boost greenback * Canadian bond prices slip By Alastair Sharp TORONTO, Nov 5 (Reuters) - The Canadian dollar weakened against the U.S. currency on Tuesday after an official from the U.S. Federal Reserve said the central bank could keep interest rates near zero into 2016. Relatively slow growth was easily imaginable, Boston Fed President Eric Rosengren said on CNBC television, though he added that economic growth could near 3 percent by early next year. "That's more hawkish, so the (U.S.) dollar has just turned here," said Steve Butler, director of foreign exchange trading at Scotiabank. "That's really what kicked it off." The Canadian dollar was trading at C$1.0441 to the greenback, or 95.78 U.S. cents, compared with C$1.0418, or 95.99 U.S. cents, at Monday's North American close. Butler said the comments could push the greenback higher, but that it would face selling interest around C$1.0460 and then a large number of options expiries around C$1.0475 and C$1.05. "It's going to take some ammo to get us through the top side, that's for sure," he said. U.S. gross domestic product data for the third quarter is due on Thursday and will illustrate the momentum in the economy before last month's partial government shutdown. The two-year bond was off half a Canadian cent to yield 1.120 percent, while the benchmark 10-year bond fell 10 Canadian cents to yield 2.508 percent.
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