CANADA FX DEBT-C$ stumbles to 11-year lows as oil dives on China thrashing

(Updates with strategist comment, details, closing figures)
    * Canadian dollar at C$1.3262 or 75.40 U.S. cents
    * Bond prices higher across the maturity curve

    By Solarina Ho
    TORONTO, Aug 24 (Reuters) - The Canadian dollar pulled back
sharply against the greenback on Monday, touching its weakest
level in 11 years, as crude prices plummeted as much as 6
percent after Chinese stocks took their biggest one-day beating
since the financial crisis.
    A recent string of disappointing data out of China sparked
expectations Beijing might take steps to sooth markets. But
Chinese stocks fell nearly 9 percent after no move was made. 
    Worries that stalling growth in one of the world's largest
economies and commodities consumers will spur a global economic
slowdown drove a dramatic meltdown in global equities and
commodities, with U.S. stocks ending more than 3 percent lower.
    The Canadian dollar finished at C$1.3262 to the
greenback, or 75.40 U.S. cents, a sharp retreat from the Bank of
Canada's official close on Friday of C$1.3169, or 75.94 U.S.
    The loonie touched C$1.3290, or 75.24 U.S. cents earlier in
the session, its softest level since August 2004.
    The price of crude, a significant Canadian export, tumbled
as low as $37.75 a barrel, before settling down 5.46 percent at
$38.24. The commodity had already suffered its longest weekly
losing streak since 1986 last week. 
    A weak greenback, which fell to its lowest level in seven
months against a basket of major currencies, did little to
support the Canadian dollar, which fell alongside other
commodities-sensitive currencies. 
    "The loonie has gotten its wings clipped and the momentum
against the Canadian dollar is really picking up steam ... This
is more of a commodities risk-off story, than it is a U.S.
dollar story," said Scott Smith, senior market analyst at
Cambridge Global Payments in Calgary.
    "Today's move in equity markets and what's happening
overseas in China really puts concern in the Federal Reserve's
mind as to the international situation and whether or not a rate
hike is best course of action at the September meeting." 
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 1.5
Canadian cents to yield 0.322 percent and the benchmark 10-year
 rising 4 Canadian cents to yield 1.264 percent.
    The Canada-U.S. two-year bond spread was -26.2 basis points,
while the 10-year spread was -74.6 basis points.

 (Reporting by Solarina Ho; Editing by Meredith Mazzilli and
Nick Zieminski)