TORONTO, Oct 21 (Reuters) - The Canadian dollar steadied near a four-week high against its US counterpart on Wednesday as investors stuck with bets the Bank of Canada would raise interest rates at a policy decision next week.
The loonie was barely changed at 1.4050 per US dollar, or 71.17 US cents, after touching on Tuesday its strongest intraday level since September 22 at 1.4030.
* "The broader move reflects a combination of a softer USD and a more hawkish Bank of Canada," said Tony Valente, senior FX dealer at AscendantFX.
* On Saturday, Bank of Canada Governor Tiff Macklem said the central bank expects to raise its quarterly inflation forecast significantly this month owing to persistently high crude oil and petroleum product prices.
* Investors see a roughly 80% chance the BoC raises its benchmark interest rate by 25 basis points to 2.50% on October 28.