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

TD Asset Management, which oversees Canada's second-biggest bond fund; Sprott Asset Management LP; and Franklin Bissett Investment Management say they're putting on hedges that would protect against the currency strengthening. That marks a switch from earlier in the year, when they unwound, or let lapse, positions in futures contracts or swap agreements as the local dollar plummeted versus its U.S. counterpart.

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