* Canadian dollar falls as BOC sees rate hikes moreuncertain
* U.S. dollar holds near 2-week high before Fed's Beige Book
* Euro pauses near $1.13 ahead of ECB meeting
* Australian dollar falls to 2-month low on rate-cut bets
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, March 6 (Reuters) - The Canadian dollar sagged toa two-month low on Wednesday as the Bank of Canada expressedcaution about the timing of future rate increases, prompted byexpected economic softness in the first half of the year.
Like the Australian dollar, the Canadian currency has beenunder pressure on bets that their central banks might considereasing interest rates to counter further slowing in their localeconomies, analysts said.
"The moves are about the dovishness of their central banksand deterioration in their domestic data," said Ben Randol,senior FX strategist at Bank of America Merrill Lynch in NewYork.
The BOC said earlier on Wednesday there was "increaseduncertainty" around future rate hikes as it held interest ratessteady as expected. urn:newsml:reuters.com:*:nL1N20T0D3
The Canadian dollar fell to C$1.3457 after the release ofBOC's latest policy statement, which was its lowest against itsU.S. counterpart since Jan. 4. At 11:25 a.m. EST (1625 GMT), itwas 0.69 percent weaker at C$1.3443.
The Aussie dollar was $0.7025, down 0.83 percent on the dayafter hitting $0.7021, a two-month low.
The greenback was generally firmer against most majorcurrencies in advance of the Federal Reserve's release of itsBeige Book at 2 p.m. EST (1900 GMT), which is a snapshot ofregional U.S. economic conditions.
While the Federal Reserve took a dovish turn of its own inlate January, the dollar has been supported by the relative widedifferentials between U.S. bond yields and most developedeconomies, analysts said.
For example, benchmark 10-year Treasury yields were about256 basis points higher than those on 10-year German Bunds DE10US10=TWEB .
Speculators have remained bullish on the greenback withongoing uncertainties about Brexit and trade negotiationsbetween China and the United States. urn:newsml:reuters.com:*:nL1N20S1CO
Meanwhile, currency market volatility has slumped in 2019 asa pause in central bank tightening and hopes for a resolution inthe U.S.-China trade conflict suppress price movements. DeutscheBank's Currency Volatility Index is approaching record lows. .DBCVIX
Viraj Patel, global macro strategist at investment advisoryfirm Arkera, said realized volatility in euro/dollar was at ornear record lows with traders struggling to find direction. ========================================================
Currency bid prices at 11:26AM (1626 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Session Euro/Dollar EUR= $1.1318$1.1306 +0.11% -1.31% +1.1326 +1.1288 Dollar/Yen JPY= 111.6900 111.8900 -0.18% +1.30% +111.9200 +111.6700 Euro/Yen EURJPY= 126.42 126.51 -0.07% +0.16% +126.5400 +126.2000 Dollar/Swiss CHF= 1.0036 1.0040 -0.04% +2.27% +1.0056 +1.0032 Sterling/Dollar GBP= 1.3136 1.3175 -0.30% +2.97% +1.3178 +1.3125 Dollar/Canadian CAD= 1.3441 1.3345 +0.72% -1.45% +1.3456 +1.3349 Australian/Doll AUD= 0.7025 0.7082 -0.80% -0.34% +0.7092 +0.7022 ar Euro/Swiss EURCHF= 1.1360 1.1357 +0.03% +0.94% +1.1369 +1.1348 Euro/Sterling EURGBP= 0.8614 0.8580 +0.40% -4.12% +0.8619 +0.8578 NZ NZD= 0.6774 0.6789 -0.22% +0.85% +0.6801 +0.6754 Dollar/Dollar Dollar/Norway NOK= 8.6650 8.6608 +0.05% +0.30% +8.6957 +8.6557 Euro/Norway EURNOK= 9.8062 9.7981 +0.08% -1.01% +9.8275 +9.7927 Dollar/Sweden SEK= 9.2906 9.3078 -0.10% +3.65% +9.3379 +9.2803 Euro/Sweden EURSEK= 10.5160 10.5261 -0.10% +2.46% +10.5537 +10.4950
Aussie dollar hits two-month low https://tmsnrt.rs/2EPQjzO
FX volatility tumbles https://tmsnrt.rs/2UkWOQs
(Additional reporting by Tommy Wilkes in LONDONEditing by Emelia Sithole-Matarise, Mark Potter and JonathanOatis) ((firstname.lastname@example.org
; +1 646 223 6313; ReutersMessaging: email@example.com