950824

Canadian

dollar

slightly weaker

TORONTO: The Canadian dollar closed slightly weaker in very thin flows, with the market focused on Thursday's release of a new poll on provincial support for Quebec separation from Canada, dealers said.

"There's nothing going on," one dealer said. "Everyone is out of the market. No-one is interested in dealing now."

Dealers said the unit could break out of its summer doldrums on Thursday if the Bundesbank cuts German interest rates. If Germany moves, the Bank of Canada is expected to cut the call loan rate by 25 basis points from its current target range of 6.25/6.75 percent, dealers said.

In the meantime, the market is focused on the release of a new poll measuring support in Quebec for separation from Canada.

Quebec premier Jacques Parizeau has pledged to announce a referendum date within two weeks, with dealers forecasting an immediate increase in volatility. The vote date is widely expected to be October 30.

The Canada closed at C$1.3580 (US$0.7364) compared to C$1.3564/69 (US$0.7371).

On the crosses, the currency fell to 1.0920 marks from 1.0968 marks Tuesday and 71.07 yen from 71.48 yen.-Reuter