TORONTO, Jan 20 (Reuters) - The Canadian dollar briefly fell, then rose versus the U.S. dollar on Tuesday after the Bank of Canada cut its key overnight lending rate by 50 basis points to 1.0 percent, a move widely expected by the market.
The unit fell to C$1.2685 to the U.S. currency, or 78.83 U.S. cents, from C$1.2675, or 78.90 U.S. cents shortly before the announcement. It then rose to C$1.2650, or 79.05 U.S. cents.
Eleven of 12 primary dealers surveyed by Reuters had forecast last week that the central bank would cut the overnight rate by 50 basis points to a fresh 50-year low of 1.00 percent.
The central bank had already cut its key overnight rate by three full percentage points since December 2007 before the rate decision on Tuesday. (Reporting by Jennifer Kwan; editing by Jeffrey Hodgson)