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C$ notches 2-week high as market volatility subsides

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TORONTO, Aug 7 - The Canadian dollar strengthened against its U.S. counterpart on Wednesday as investors assessed whether the recent sell-off in the currency had run its course and despite the Bank of Canada worrying about the outlook for the domestic economy.

Winding down of yen-funded carry trades and concern the Federal Reserve has waited too long to cut interest rates spooked investors in recent days. Speculators have raised their bearish bets on the Canadian dollar to an all-time high, recent data from the U.S. Commodity Futures Trading Commission showed.

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