CANADA FX DEBT-C$ falls more than a penny to weakest since March
* C$ drops to C$0.9930 to the U.S. dollar, or $1.0070
* Weakest since March, traders eye US$ parity
* Bond prices jump as investors continue to exit risk
By Andrea Hopkins
TORONTO, Aug 8 (Reuters) - Canada's dollar weakened to a near five-month low against the U.S. currency on Monday, approaching parity, as global fear about a possible double-dip U.S. recession and European and U.S. debt crises weighed.
The euro also fell against the dollar, down more than 1 percent, while the yen gained broadly as investors sought Japan's safe-haven currency given tumbling global stocks. [FRX/]
"A number of important benchmark markets around the world are in bear market territory now ... so this is an environment where risk aversion is probably going to persist," said Shaun Osborne, chief currency strategist at TD Securities.
"In that kind of environment we would expect the Canadian dollar to continue underperforming."
Equity markets dropped on Monday in the third day of fevered selling as investors fled riskier assets in the wake of the weekend downgrade of U.S. sovereign debt and continued worries of a contagion of European debt. Continued...