CANADA FX DEBT-C$ slides to near-week low on China, Portugal
* C$ falls to C$0.9656, or $1.0356
* China rate hike, Portugal debt spoil risk appetite
* Bond prices stronger, Canada slightly outperforms
By Trish Nixon
TORONTO, July 6 (Reuters) - Canada's dollar weakened against its U.S. counterpart on Wednesday, touching its lowest point in almost a week, after China's rate hike and a downgrade of Portugal's debt fueled buying of the safe-haven greenback.
China raised interest rates for the third time this year, making clear that taming inflation remains a top priority even as its vast economy pauses. [ID:nL3E7FK17V]
Portugal's credit downgrade by ratings agency Moody's also reignited fears about euro zone debt just as concerns over Greece ebbed. [MKTS/GLOB]
The Canadian dollar's fall reflects "ongoing risk aversion because of concerns about Europe's credit crisis," said Sal Guatieri, senior economist at BMO Capital Markets.
China's tightening also raises concerns about a hard economic landing there, which would undermine commodity prices and hurt the Canadian dollar, he said. Continued...