CANADA FX DEBT-C$ slips to 1-week low as risk appetite fades
* C$ slides as low as C$1.0595 per US$
* Lower commodity prices weigh on C$
* Bond prices stay lower after U.S. data
By Frank Pingue
TORONTO, Nov 17 (Reuters) - Canada's currency tumbled to its lowest level in a week versus the U.S. dollar on Tuesday given a backdrop of weaker equities and commodity prices that shook investor appetite for riskier assets.
The Canadian dollar had earlier fallen to C$1.0595 to the U.S. dollar, or 94.38 U.S. cents, which was 1 percent below its Monday closing level and its weakest since Nov. 10, before rebounding slightly.
Keeping it pinned down were lower prices for key Canadian exports like oil and gold, which often influence the direction of the country's currency.
Oil prices gave back some of the previous session's rally and were holding around $79 a barrel, while gold backed off the record high reached Monday. [O/R] [GOL/]
Also, North American equities were pointing to a lower start to the session on the heels of a slide in world stocks as investors locked in gains from a recent rally.
"The currency is a little bit weaker this morning in the wake of softer commodity prices and generally weaker equities markets," said Michael Gregory, senior economist at BMO Capital Markets.
"This is a sign that investors perhaps have a little less risk appetite this morning which of course hurts peripheral currencies like the Canadian dollar."
By 8:55 a.m. (1355 GMT), the Canadian unit was at C$1.0580 to the U.S. dollar, or 94.52 U.S. cents, down from C$1.0471 to the U.S. dollar, or 95.50 U.S. cents, at Monday's close.
Domestic bond prices were a touch lower across the curve, following a decline in the bigger U.S. Treasury market, which only briefly recovered after the release of U.S. producer price data for October.
The U.S. data showed producer prices rose more slowly than expected in October despite a rebound in food and energy costs, which pointed to tame inflation pressures. [ID:nN16516980] (Additional reporting by Scott Anderson; Editing by Jeffrey Hodgson)
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