CORRECTED - CANADA FX DEBT-C$ sags to near 3-week low as risk sells off

Tue Nov 16, 2010 4:34pm EST
 
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(Corrects paragraph 12 to show recent upper range of U.S. dollar vs Canadian was C$1.0160, not C$1.0560)

* C$ hits session low of 97.54 U.S. cents

* Canadian bond prices higher across curve (Updates to afternoon; adds details, commentary)

By Claire Sibonney

TORONTO, Nov 16 (Reuters) - The Canadian dollar shed more than a cent against the greenback on Tuesday, hitting its lowest level in nearly three weeks, as commodity prices and equity markets slumped and weak domestic data fueled concerns about economic growth.

The currency CAD=D4 fell as low as C$1.0252 to the U.S. dollar, or 97.54 U.S. cents, by late morning, its weakest level since Oct. 28.

North American equities sold off hard amid festering worries over fiscal tightening in China and euro zone debt levels. [.N] [.TO]

Prices for key Canadian commodities, such as oil, base metals and gold, were also down sharply as the U.S. dollar continued to strengthen on rising risk aversion. [O/R] [MET/L] [GOl] FRX/]

"I don't think there's been one particular trigger for this," said Shaun Osborne, chief currency strategist at TD Securities.   Continued...