CANADA FX DEBT-C$ down on weak commodities, strong greenback

Mon Sep 14, 2009 8:07am EDT
 
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 * C$ at C$1.0907 to the U.S. dollar, or 91.68 U.S. cents
 * Bonds little changed across curve
 TORONTO, Sept 14 (Reuters) - Canada's dollar fell against
the U.S. currency on Monday, pulled down by weak commodity
prices and a strong greenback on fears a growing trade spat
between the United States and China could hurt world economic
recovery.
 U.S. President Barack Obama announced safeguard duties on
tyre imports from China late last week and China later
responded by signaling anti-dumping investigations of U.S.
chicken products and vehicles. [ID:nSP459289] [ID:nLD514738]
 But Canada seemed to have an "extra flavor" to its
weakness, said Eric Lascelles, chief economics and rates
strategist at TD Securities.
 "The Canadian political scene is back in play. House of
Commons sits and there is much talk about election risks," he
said.
 This month, Canada's main opposition Liberals vowed to
bring down the minority Conservative government at the first
opportunity, arguing they could manage the economy better.
 At 7:45 a.m. (1145 GMT), the Canadian dollar was at
C$1.0907 to the U.S. dollar, or 91.68 U.S. cents, down from
C$1.0786 to the U.S. dollar, or 92.71 U.S. cents, at Friday's
close.
 The price of oil CLc1, a key Canadian export, fell to
around $68 a barrel, while gold prices fell below $1,000 an
ounce. [O/R] [GOL/]
 Canadian bond prices were flat across the curve, extending
a mixed session overnight, which did not have a "whole lot of
tone," said Lascelles.
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)