CANADA FX DEBT-C$ down, bonds up as swine flu worries weigh
* C$ touches low of 81.85 U.S. cents
* Bond prices higher as equities weak
* Threat of swine flu knocks equity markets (Adds details, quote)
By Jennifer Kwan
TORONTO, April 27 (Reuters) - Canada's currency fell on Monday as worries about the magnitude of the swine flu outbreak pulled down the prices of Canadian commodities and pushed investors to the perceived safe haven of the U.S. dollar.
Commodity prices and equity markets fell on concern that the outbreak could dampen any economic rebound [MKTS/GLOB]. Mexico said on Monday that 149 people had been killed by the virus, which has spread to the United States, Canada and Europe [ID:nN27484099].
"If you see people a little bit nervous over the uncertainty, it may cause a little bit of a spillover impact in terms of people curtailing consumption and things that would normally be expected to help promote economic growth," said George Davis, chief technical strategist at RBC Capital Markets.
"That uncertainty is why the equity markets are trading with a softer tone."
The Canadian currency dropped as low as C$1.2217 to the U.S. dollar, or 81.85 U.S. cents, but climbed a bit to finish at C$1.2195 to the U.S. dollar, or 82.00 U.S. cents, down from Friday's close of C$1.2097 to the U.S. dollar, or 82.67 U.S. cents. Continued...