By Chris Fournier Jan. 19 (Bloomberg) -- Canada’s dollar depreciated before the Bank of Canada’s monetary-policy decision, falling from almost a three-month high as the U.S. currency climbed against all of its 16 major counterparts on less risk demand. “It’s a mix of some risk reduction today and the Bank of Canada meeting,” said Sebastien Galy, a foreign-exchange strategist at BNP Paribas SA in New York. “Short-term volatilities are rising ahead of the meeting for fear of what the Bank of Canada could say.” The Canadian currency declined 0.5 percent to C$1.0310 per U.S. dollar at 8:13 a.m. in Toronto, from C$1.0261 yesterday. It climbed to C$1.0225 on Jan. 14, the strongest level since Oct. 15. One Canadian dollar buys 96.99 U.S. cents. All 26 economists in a Bloomberg News survey predict the Bank of Canada will leave the overnight lending rate at a record low 0.25 percent. The Canadian currency, which tends to rise and fall with stocks and commodity prices as a proxy for risk, will weaken to C$1.04 by the end of this quarter, according to the median of 28 forecasts in a Bloomberg survey of economists. To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

Source