Canadian dollar slips as greenback rises, oil sags

Mon Sep 29, 2008 10:46am EDT
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*Canadian dollar slips 0.1 percent against greenback

*Banking woes move to Europe

*Bond prices rise on safe haven-bid as stocks fall

TORONTO, Sept 29 (Reuters) - The Canadian dollar slipped against a firmer U.S. dollar on Monday as concerned investors shifted their attention to Europe and commodity prices weakened on expectations the financial turmoil would lead to softer demand.

Canadian bond prices rose in a safe-haven bid fed by the strains in the global banking system.

At 10:20 a.m. (1420 GMT), the Canadian dollar was at C$1.0336 to the U.S. dollar, or 96.75 U.S. cents, down from C$1.0328, or 96.82 U.S. cents, at Friday's close.

The currency fell to C$1.452, or 95.68 U.S. cents, early in the session, its weakest level in a week, but quickly bounced back over a cent as low liquidity in the markets amplified moves.

Shaun Osborne, chief currency strategist at TD Securities, said the Canadian dollar was likely going to remain stuck in a range of C$1.03 to C$1.05 for quite some time as investors focus their attention on markets elsewhere in the world.

"Until we get a clear idea of what the fiscal implications of the U.S. bailout package are and what's going on in Europe, it's very difficult to get a strong handle on where we're going here," he said.   Continued...