CANADA FX BONDS-C$ sags as weak equities hinders risk bid
* C$ weakens to 93.35 U.S. cents
* Weak oil price adds to downward pressure
By Jennifer Kwan
TORONTO, Sept 18 (Reuters) - The Canadian dollar fell back against the generally stronger U.S. currency on Friday as world equities dampened investors' thirst for risk.
Global equities fell on Friday as investors paused after recent gains that pushed markets in Europe and Asia to multi-month highs. The move gave the downtrodden dollar a respite. [MKTS/GLOB]
"We had a bit of a risk pull back overnight. Looks like the equities markets are a little bit lower -- not disturbingly lower -- but a bit lower," said Steve Butler, director of foreign exchange trading at Scotia Capital.
"It looks like a bit of Friday profit taking."
The move lower comes after the Canadian dollar touched an 11-month high -- hitting 94.42 U.S. cents -- against a generally lower U.S. currency on Thursday, but fell back to finish the session lower.
At 7:32 a.m. (1132 GMT), the Canadian dollar was at C$1.0712 to the U.S. dollar, or 93.35 U.S. cents, down from Thursday's finish at C$1.0668 to the U.S. dollar, or 93.74 U.S. cents. Overnight, it touched a low of 92.85 U.S. cents.
Another factor pressuring the Canadian dollar was a weakness in the price of oil CLc1, a key Canadian export, which earlier dropped below $72 a barrel. [O/R] Gold held steady and base metals were generally lower. [GOL/] [MET/L]
Canadian bond prices were little changed on Friday morning, pausing after a rise in the previous session. The domestic market followed the U.S. Treasury market where prices dipped in Europe ahead of next week's near record amount of new issuance. [ID:nLI230677] (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)
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