C$ to weaken back under parity-Bank of Canada survey

* Hedging clients of banks saw C$ weaker in 2012, 2013
* Survey conducted in from June to August

OTTAWA, Nov 23 (Reuters) - Companies and institutional
investors who hedge their Canadian dollar exposure through major
banks expect the currency to fall back under parity with the
U.S. dollar in 2013, a Bank of Canada survey showed on Friday.
The central bank conducted the survey of banks that are
active in Canadian foreign exchange hedging from June to August,
a period when the Canadian dollar was largely weaker than the
U.S. dollar.
It found the banks' average estimate of their clients'
budgeted Canadian dollar rate for 2013 is C$1.0119 to the U.S.
dollar, or 98.82 U.S. cents. The rate for 2012 is C$1.0075 per
U.S. dollar, or 99.26 U.S. cents, the survey showed.
On Friday afternoon, the Canadian currency stood at
C$0.9922 per U.S. dollar, or $1.0079.

"The Canadian dollar is largely anticipated to remain little
changed over the next year with banks noting that most accounts
do not expect the Canadian dollar to trade significantly outside
a (US$)0.98-(US$)1.03 range," the bank said.
"They noted that their customers felt little pressure to
hedge due to expectations that the currency would remain steady,
with clients choosing to wait for a more opportunistic level to
hedge, within the anticipated range."
The report added that as a result of that view, many
corporate clients were choosing to cover exposures in the spot
market, or hedge for less than one month.