The Canadian dollar fell versus a broadly surging U.S. currency on Wednesday, as a report showing higher-than-anticipated U.S. March inflation raised expectations that U.S. interest rates will continue to rise. The currency was at C$1.2446 to the U.S. dollar, down from C$1.2377 to theU.S. dollar. Rising inflation fears could prompt the U.S. Federal Reserve to speed up the pace of interest rate increases. While the Fed has been steadily raising its fed funds rate since last year, the Bank of Canada has left its overnight rate pinned at 2.50 percent since October, when signs of a weakening exports sector emerged. Bank of Canada Governor David Dodge and Senior Deputy Governor Paul Jenkins will appear before the Standing Senate Committee on Banking, Trade and Commerce later in the session. They noted that interest rates will have to move higher at some point, and said the economy should grow by about 2-1/2 percent in 2005 and by 3-1/4 percent in 2006.