Canada finance minister warns on C$ rise

PICKERING, Ontario Aug 4 (Reuters) - The strength of the Canadian currency has not been fully justified and there are measures that could be taken to stop its rise, Finance Minister Jim Flaherty said on Tuesday.

"We are concerned with any rapid changes in the valuation of the Canadian currency vis a vis the U.S. currency ... We watch that," Flaherty told reporters.

"There are some steps that could be taken to dampen that. There are, from time to time, indications of some speculation in the Canadian currency that is not justified in market terms," he said.

The Canadian dollar hit a 10-month high versus the U.S. currency on Tuesday. (Reporting by Ka Yan Ng; writing by Louise Egan; editing by Peter Galloway)