CANADA FX DEBT-C$ hits 2-week low as resource prices weigh

Tue Nov 16, 2010 8:29am EST
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* C$ falls to 98.62 U.S. cents

* Canadian bond prices track U.S. Treasuries higher

TORONTO Nov 16 (Reuters) - The Canadian dollar retreated against the U.S. currency to its lowest in two weeks, partly on weak commodity prices and as equity markets were pressured by lingering concerns about sovereign debt in Europe.

Oil fell below $84 a barrel, while copper prices were weighed by worries top metals user China plans further steps to cool down its overheated economy. [MKTS/GLOB]

World stocks fell for the seventh straight session on Tuesday on persistent worries over Ireland's debt problems, although Dublin resisted pressure to seek a state bailout by signalling that its banks may need help. [ID:nLDE68T0MG]

Greece promised on Monday to stick to its deficit cutting plan while its prime minister said Germany's tough stance may push debt-laden European nations such as Portugal and Ireland to bankruptcy.

At 8:05 a.m. (1305 GMT), the Canadian dollar CAD=D4 was at C$1.0140 to the U.S. dollar, or 98.62 U.S. cents, down from C$1.0089 to the U.S. dollar, or 99.12 U.S. cents, at Monday's close.

The currency fell as low as C$1.0169 to the U.S. dollar, or 98.34 U.S. cents, before recovering a bit.

"We did see some weakness but things are coming back a little bit now but it's generally underperforming," said Sacha Tihanyi, currency strategist at Scotia Capital.   Continued...