OTTAWA, Aug 10 (Reuters) - The Canadian dollar recovered some of the session's losses against its U.S. counterpart on Tuesday after the U.S. Federal Reserve renewed its pledge to keep interest rates low for an extended period.
The Canadian currency cut losses to C$1.0328 to the U.S. dollar, or 96.82 U.S. cents, from C$1.0360 to the U.S. dollar, or 96.53 U.S. cents before the announcement.
It was still lower compared with Monday's finish at C$1.0267 to the U.S. dollar, or 97.40 U.S. cents.
The rate decision, widely expected, also accompanied the Fed's announcement that it will begin funneling proceeds from its maturing mortgage bonds into longer-term government debt in an effort to support a sputtering economic recovery. [ID:nWALMHE6AQ] (Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson)