* C$ falls more than 2 U.S. cents
* Data suggests road to recovery still bumpy
* Bonds head higher as equities tumble (Updates to midafternoon)
TORONTO, June 3 (Reuters) - Reduced risk appetite pulled the Canadian dollar sharply lower against the U.S. currency on Wednesday afternoon as equity markets and oil prices extended their declines.
The currency fell as low as C$1.1101 to the U.S. dollar, or 90.08 U.S. cents, in concert with it commodity-led cousins, the New Zealand and Australian dollars, which suffered deeper losses.
The U.S. dollar rose against a basket of major currencies as a sharp fall in stocks trimmed risk appetite in the market and rekindled safe-haven demand for the greenback. [ID:nN0382117]
"Some of the currencies that have done the best on the upside on the increasing risk appetite, improvement in equity markets, improvement in commodity markets, they're all finding those positions reversed. Canada is in that pack," said Mark Chandler, fixed income strategist, at RBC Capital Markets.
At 2:45 p.m. (1845 GMT), the currency was at C$1.1083 to the U.S. dollar, or 90.23 U.S. cents, down from C$1.0810 to the U.S. dollar, or 92.51 U.S. cents, at Tuesday's close.
Global stocks and oil fell hard after a batch of weak U.S. economic data and an unexpected rise in crude inventories suggested the road to recovery is still bumpy. [MKTS/GLOB] [ID:nSP477138]
Canadian bond prices higher across the curve on Wednesday, partly benefiting from the debt's safe haven status in light of declining equity markets.
Some economic reports released on Wednesday suggested the economic recovery in the United States may have stalled, giving bonds a small bump. [ID:nN03345672]
"It's a modest decline in yields, given what we've seen in equities, said Chandler. "But to be fair, (the data) didn't add a whole lot to the mix."
The benchmark two-year government bond rose 10 Canadian cents to C$100.15 to yield 1.276 percent, while the 10-year bond gained 25 Canadian cents to C$103.05 to yield 3.387 percent.
The 30-year bond rose 35 Canadian cents to C$116.95 to yield 3.989 percent. (Reporting by Ka Yan Ng; editing by Rob Wilson)
Our Standards: The Thomson Reuters Trust Principles.