* Canda dollar at C$1.0040 or 99.60 U.S. cents
* Bonds little changed
By John McCrank
TORONTO, Oct 13 (Reuters) - The Canadian dollar rose on Wednesday to its highest point against the greenback since late April on signs the U.S. Federal Reserve would soon begin pumping cheap cash into the flagging U.S. economy.
Fed officials said in their Sept. 21 policy-setting session, the minutes of which were released on Tuesday, that they had a "sense that (more) accommodation may be appropriate before long," including buying additional longer-term Treasury securities. [ID:nN12191658]
"The statement showed a degree of resoluteness in the FOMC (Federal Open Market Committee) to basically step on the throat of the deflation threat until it gives up," said David Watt, senior currency strategist at RBC Capital Markets.
Canada is heavily dependent on the U.S. economy as it takes in about three-quarters of Canada's exports.
"Our major trading partner, which went from looking like it was going to be one of the leaders on the way out of the global recession to all of a sudden having an increasingly fretful outlook," said Watt. "Now all of a sudden, the Federal Reserve is basically getting prepared to step on the gas pretty hard and I think that is playing out to an extent in the Canadian dollar."
At 8:00 a.m. (1200 GMT), the Canadian dollar CAD=D4 was at C$1.0040 to the U.S. dollar, or 99.60 U.S. cents, up from Tuesday's finish of C$1.0106 to the U.S. dollar, or 98.95 U.S. cents. It was the currency's highest point against the greenback since April 30.
BONDS LITTLE CHANGED
Government bond prices were little changed on Wednesday.
The two-year bond CA2YT=RR was up 1 Canadian cent for a yield of 1.370 percent, while the 10-year bond CA10YT=RR was down 5 Canadian cents, yielding 2.733 percent. (Editing by Theodore d'Afflisio)