CANADA FX DEBT-C$ hits one-week low on China rate, Ireland fears
* C$ closes at 99.10 U.S. cents
* Bonds little changed, but outperform (Updates to close, adds commentary)
By Claire Sibonney
TORONTO, Nov 12 (Reuters) - The Canadian dollar fell against its U.S. counterpart on Friday but firmed versus the euro as worries about Irish debt and the potential for a Chinese rate hike triggered a flight from riskier assets.
Ireland is in talks to receive emergency funding from the European Union in a deja-vu of Greece six months ago, official sources said, while rumors swept through the market that further monetary tightening was imminent to stem rising Chinese prices. [ID:nTOE6AB04P] [ID:nTST000631]
"It had sold off as you would expect with all riskier assets selling off, with commodity markets getting pummeled. It hasn't sold off that badly though," said Fergal Smith, managing market strategist at Action Economics.
Commodities such as oil, gold and base-metals tumbled, while global equities pulled back sharply.
The Canadian dollar CAD=D4 closed at C$1.0091 to the U.S. dollar, or 99.10 U.S. cents, down from C$1.0032 to the U.S. dollar, or 99.68 U.S. cents, at Thursday's close. It was off 0.9 percent for the week.
"We're now back to looking at what's negative. I think that speaks to an underlying lack of confidence in the state of the global economy. So instead of focusing on the positive, we're going from one negative to the next negative," said David Tulk, senior macro strategist at TD Securities. Continued...