October 30, 2012 / 1:39 PM / 5 years ago

Canada dollar near 2-1/2 month low, volumes light on storm

TORONTO (Reuters) - The Canadian dollar hovered near parity with the U.S. currency on Tuesday after a massive storm slammed into the U.S. East Coast, shuttering equity and other trading systems for a second day.

Trade was muted by a lack of volume, though some traders said they expected corporate and sovereign buying of the greenback ahead of the month-end and as investors unwound long Canada dollar or short euro-Canada positions.

“The market is acting like it’s a holiday, very low volatility, narrow ranges,” said Steve Butler, director of foreign exchange trading at Scotiabank. “Today might be a little busier because we’re approaching month-end.”

At 8:58 a.m. (1258 GMT) the Canadian dollar was trading at C$1.0002 to the greenback, or $0.9998, compared with C$1.0008, or $0.9992, at Monday’s North American close.

The currency at one pointed hit C$1.0020 to the greenback, its weakest level since August 6.

Canadian bond markets remained open though volumes were also hit by the closure of the U.S. market. The two-year bond was off a Canadian cent to yield 1.089 percent, while the benchmark 10-year bond rose 1 Canadian cent to yield 1.796 percent.

Editing by Jeffrey Hodgson

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