CANADA FX DEBT-C$ near 2-1/2 month low, volumes light on storm

* C$ at C$1.0002 to US$, or $0.9998
    * Touches weakest level since Aug. 6
    * Approach of month-end could further weaken C$

    By Alastair Sharp
    TORONTO, Oct 30 (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 Aug. 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.