* C$ at C$1.0682 vs US$, or 93.62 U.S. cents * C$ just below three-year lows * Bond prices lower across maturity curve By Leah Schnurr TORONTO, Dec 5 (Reuters) - The Canadian dollar weakened against the greenback on Thursday, hovering just below a 3-1/2-year low as a more dovish-than-expected tone from the Bank of Canada reinforced a market view that interest rates will stay low for some time. Investors also positioned ahead of labor market reports due on Friday for both Canada and the United States. The data south of the border will be key in calibrating expectations for when the U.S. Federal Reserve might start to wind down its economic stimulus. "The market will be a bit wary about tomorrow's numbers," said Dean Popplewell, chief currency strategist at OANDA in Toronto. "Everybody is looking for some sort of indication whether a Fed taper will be introduced as early as this month." Investors are trying to gauge whether the Fed will start to reduce its $85 billion a month in bond purchases at its next meeting later in December, or hold off until next year. The Canadian dollar has fallen in six of its last sessions, dropping through key support levels as investors turned bearish. The loonie got some relief, firming against the U.S. currency in early Thursday trading, but it soon gave the gains back. In a statement that showed the central bank is increasingly concerned about possible disinflation, the Bank of Canada on Wednesday said the risks of weak inflation now appear greater than they did six weeks ago. As was widely expected, the central bank also held its key interest rate at 1 percent - where it has been since 2010. October's policy shift has pushed out market expectations for the next rate hike into 2015. Wednesday's statement was the first following a policy shift in October, when the central bank dropped any mention of a rate hike, catching markets off guard. Since the October statement, the loonie has lost more than 3 percent. During the period, it has also been pressured by weak oil prices and the prospect of the U.S. Fed winding down sooner rather than later. The Canadian dollar was at C$1.0682 to the greenback, or 93.62 U.S. cents, weaker than Wednesday's close of C$1.0678, or 93.65 U.S. cents. The loonie eased as far as C$1.0708 during Wednesday's session, its weakest level since May 2010. The currency barely reacted to data on Thursday that showed the value of building permits in Canada jumped 7.4 percent to C$7.19 billion ($6.72 billion) in October in another sign of renewed strength in the housing market. Data on Friday is forecast to show Canada added 12,000 jobs in November, while the unemployment rate is seen holding at 6.9 percent. In the United States, the economy is expected to have created 180,000 last month. The two-year bond was down 3 Canadian cents to yield 1.080 percent, while the benchmark 10-year bond fell 19 Canadian cents to yield 2.675 percent.