After the worst annual start in more than four decades forCanada's dollar, recent moves by the nation's money managerssuggest it may be about to turn around.

TD Asset Management, which oversees Canada's second-biggest bondfund; Sprott Asset Management LP; and Franklin Bissett InvestmentManagement say they're putting on hedges that would protect againstthe currency strengthening. That marks a switch from earlier in theyear, when they unwound, or let lapse, positions in futurescontracts or swap agreements as the local dollar plummeted versusits U.S. counterpart.

Investors are not ready to bet on further depreciation after theBank of Canada noted last week that inflation and economic growthhave been stronger than forecast as policy makers kept interestrates at 1 percent. Year-end forecasts have stabilized, afterjumping to C$1.12 per U.S. dollar in the middle of February, fromC$1.08 at the end of last year.