Canada dollar inches higher vs weakened greenback
* Canadian dollar inches up 0.1 percent vs greenback
* Core inflation rises in August
* Bond prices little changed, focus on U.S. bailout
By John McCrank
TORONTO, Sept 23 (Reuters) - The Canadian dollar was slightly stronger against the U.S. dollar on Tuesday, as uncertainty about the U.S. government's $700 billion rescue plan for its troubled financial sector weighed on the greenback.
Canadian bond prices were little changed, lagging the moves of the bigger U.S. market, as investors waited to see what would develop with the proposed U.S. bailout package.
At 9:40 a.m. (1340 GMT), the Canadian dollar was at C$1.0320 to the U.S. dollar, or 96.90 U.S. cents, up from C$1.0334 to the U.S. dollar, or 96.77 U.S. cents, at Monday's close.
The currency rose 0.1 percent after gaining 1.6 percent against the greenback on Monday.
"The (U.S.) dollar obviously had a disastrous day yesterday... so I'm not surprised to see things settle a little bit this morning," said Steve Butler, senior currency strategist at Scotia Capital. Continued...