CANADA FX DEBT-C$ hits one-month low as oil falls below $36

Thu Jan 15, 2009 11:02am EST
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* C$ at one-month low as oil drops after OPEC forecast

* Bonds rise as Toronto stocks fall more than 1.5 percent

By Jennifer Kwan

TORONTO, Jan 15 (Reuters) - The Canadian dollar weakened to a one-month low against the U.S. currency on Thursday as the price of oil fell below $36 a barrel on gloom about the health of the global economy.

Domestic government bond prices followed U.S. Treasuries higher, with both markets boosted by safe haven buying as stocks fell on fears about the U.S. banking sector. Toronto's main stock index .GSPTSE shed more than 1.5 percent.

At 11:00 a.m. (1600 GMT), the Canadian currency was at C$1.2647 to the U.S. dollar, or 79.07 U.S. cents, down from C$1.2483 to the U.S. dollar, or 80.11 U.S. cents, on Wednesday.

The Canadian dollar at one point touched C$1.2651, or 79.04 U.S. cents, its weakest level since December 10.

The unit has fallen in the previous four sessions as data and reports on both sides of the border intensified fears about the depth of the global economic downturn.

U.S. economic data on Thursday, including weekly jobless claims and producer prices, added to that dour picture. [ID:nN15511415]   Continued...