CANADA FX DEBT-C$ falls as oil, equity markets weaken
* C$ falls to 89.09 U.S. cents
* Oil drops below $72, pressures currency
* Bonds flat to higher on easing supply concerns (Adds details, quote)
By Jennifer Kwan
TORONTO, June 12 (Reuters) - The Canadian dollar fell against the U.S. dollar on Friday morning as equities markets and commodities prices weakened and as the greenback recovered after losses this week.
At 9:40 a.m. (1340 GMT), the Canadian dollar was at C$1.1225 to the U.S. dollar, or 89.09 U.S. cents, down from C$1.1032 to the U.S. dollar, or 90.65 U.S. cents, on Thursday.
Canada is a major oil producer and the Canadian currency was pressured on Friday by a drop in oil prices CLc1 to below $72 a barrel after a three-day rally. The Canadian dollar was also hit by a stronger U.S. dollar after the greenback had spent most of the week under pressure as investors turned to higher-yielding currencies and other assets. [ID:nLC158279] [FRX/]
Rises on stock markets also have been supporting the Canadian dollar recently, but equities were weaker on Friday ahead of G8 finance ministers' meetings [MKTS/GLOB] in Italy over the weekend.
"It kind of feels to me it's one of those days where everything that is risk adverse is going to be the play," said David Bradley, director of foreign exchange trading at Scotia Capital. Continued...