CANADA FX DEBT-C$ softer as muted risk appetite supports the greenback

    * U.S. dollar firm across the board
    * Canadian government bond prices higher 

    By Saqib Iqbal Ahmed
    NEW YORK, Aug 20 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Monday, as lingering worries
about an economic crisis in Turkey spreading to other emerging
market countries provided support to the greenback.
    Higher-yielding currencies have taken a beating in recent
days as investors reached for the relative safety of the U.S.
currency amid worries that the currency crisis in Turkey could
roil emerging markets further.
    "We still have this Turkey crisis and emerging markets are
trading in bear territory, so there is natural attraction to
wanting to own the U.S. dollar, and against Canada is no
exception," said Dean Popplewell, vice president of market
analysis at OANDA, in Toronto.             
    At 9:31 a.m. EDT (1331 GMT), the Canadian dollar         
was trading about 0.1 percent lower at C$1.3072 to the
greenback. The dollar index       , which measures the greenback
against a basket of six other currencies, was up 0.02 percent on
the day.
    The loonie rose sharply on Friday following data that showed
Canada's annual inflation rate surged to 3.0 percent in July,
its highest level in nearly seven years, raising expectations
that the Bank of Canada might raise interest rates again as soon
as next month.             
    Investors will be closely watching this week's trade talks
between the United States and China, for clues to whether the
two countries can resolve an escalating tariff war that
threatens to engulf all trade between the world's two largest
    Canada exports many commodities and runs a current account
deficit, so its economy could be hurt if the flow of trade or
capital slows. 
    Canadian government bond prices were higher on Monday. The
yield on the 10-year             was at 2.238, down from 2.268,
on Friday.

 (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis)