* C$ hits strongest level since Oct. 14, but pares gains
* Flees parity to trade at 99.65 U.S. cents
* Bond prices fall across curve (Recasts, updates to mid-afternoon)
By Claire Sibonney
TORONTO, Nov 9 (Reuters) - The Canadian dollar eased away from parity against its U.S. counterpart on Tuesday, pressured by a bounce in the greenback and a broad flight from riskier assets.
Earlier, Canada's currency edged above one-for-one footing with the U.S. dollar to its strongest levels since Oct. 14, as commodity prices rallied and a lift in the euro helped whet appetite for other risk-related plays.
But the euro faltered as investors worried about Irish and Portuguese government debt and hedged sizable bets against the U.S. dollar.
"It's been a broad market move, euro has kind of led it, sterling's followed, gold has absolutely collapsed," said Sacha Tihanyi, currency strategist at Scotia Capital."
"It's really the dollar moving very much higher ... equities are all moving in the same direction as well. It's a risk move by the looks of it considering everything moving in tandem like this."
Growing inflation fears among some investors and pressure on the greenback after the U.S. central bank's actions to bolster the U.S. economic recovery had boosted the prices of crude oil and gold -- key Canadian commodities. Gold hit a record high on Tuesday before retreating. [GOL/]
At 2:28 p.m. (1928 GMT), the Canadian dollar CAD=D4 was C$1.0035 to the U.S. dollar, or 99.65 U.S. cents, practically flat compared to C$1.0037 to the U.S. dollar, or 99.63 U.S. cents, on Monday, when it closed lower for the first time in eight sessions.
In early trade, the Canadian dollar firmed as high as 99.80 Canadian cents to the U.S. dollar, or $1.002.
Tihanyi said that precise level, last hit on Oct. 14, continues to provide short-term resistance for the Canadian dollar. On the support side, he was looking at recent weakness around C$1.0080, or 99.21 U.S. cents.
At this point, Tihanyi said parity is still in reach.
"Parity loses its meaning psychologically the more you trade around it so I think it certainly is still achievable."
Canadian government bond prices were lower across the curve, weighed down by declines in U.S. Treasuries.
The two-year bond CA2YT=RR lost 11 Canadian cents to yield 1.590 percent, while the 10-year bond CA10YT=RR shed 60 Canadian cents to yield 2.960 percent. (Editing by Jeffrey Hodgson)