* Canada dollar at C$1.0259 vs US$, or 97.48 U.S. cents * Hits weakest since March 20 * Bank of Canada news due at 10 a.m. * Central bank expected to hold rates, trim growth forecasts By Alastair Sharp TORONTO, April 17 (Reuters) - The Canadian dollar weakened against its U.S. counterpart in morning trade on Wednesday as investors awaited news from the central bank, which is widely expected to trim its optimistic growth forecast and may even drop a weak tightening bias. The Bank of Canada announces its interest rate decision and releases its quarterly Monetary Policy Report at 10 a.m. (1400 GMT). The bank is widely expected to keep interest rates on hold and many also expect it to acknowledge the weakness seen in Canadian data during the first quarter. "The market certainly seems to be trading with an expectation that the statement will be a little bit more dovish again," said Matt Perrier, managing director of foreign exchange sales at BMO Capital Markets. "Whether that means a complete taking out of the future tightening bias which has already been pushed down the road or not remains to be seen." Canada has been an outlier among major developed economies in maintaining a view that rates will eventually rise, eschewing the unconventional monetary easing proving so popular at the U.S. Federal Reserve, Bank of England, and now in drastic fashion at the Bank of Japan At 8:45 a.m. the Canadian dollar was trading at C$1.0259 to the greenback, or 97.48 U.S. cents, compared with C$1.0205, or 97.99 U.S. cents, at Tuesday's North American close. At one point it hit C$1.0266, its weakest point versus the greenback since March 20. The price of Canadian government debt was higher across the curve, with the two-year bond up 2 Canadian cents to yield 0.928 percent, while the benchmark 10-year bond rose 12 Canadian cents to yield 1.724 percent.