* C$ slips to C$0.9657 to the U.S. dollar, or $1.0355
* Bond prices pick up in safety bid
TORONTO, May 12 (Reuters) - The Canadian dollar fell against the U.S. currency on Thursday, tripped up again by a deepening commodities sell-off.
Another wave of selling hit the commodity complex, with oil -- a key driver for the commodity-linked Canadian currency, extending the previous session's decline and other key commodities such as silver and copper were also steeply lower. [ID:nLDE74B0WZ]
The latest commodity rout was prompted by concerns of a weaker global outlook, particularly about the extent to which the Chinese economy may cool even as inflation remains high.
China increased its reserve requirement ratio for commercial banks for the eighth time since October on Thursday, extending its campaign to calm prices. [ID:nL3E7GC287]
Persistent speculation about a possible Greek debt restructuring also kept risk appetite volatile.
"Given the global backdrop, it's no surprise to see the Canadian dollar as a weaker performer. But it has company. It's weak along with other commodity currencies and actually outperforming the Australian dollar," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
At 8:10 a.m. (1410 GMT), the Canadian dollar CAD=D4 was at C$0.9657 to the U.S. dollar, or $1.0355, down from C$0.9611 to the U.S. dollar, or $1.0405, at Wednesday's North American session close.
Canadian bond prices edged up as the relative safety of government debt was more alluring in the face of weakening commodity prices and an exit from equity markets.
Closely watched U.S. retail sales and initial jobless claims data due later in the day may provide short-term direction for markets.
A weak reading in jobless claims after a surprise surge in initial claims to an eight-month high in the previous week could stoke worries the job market recovery may be losing steam.
Canada's two-year bond CA2YT=RR climbed 3 Canadian cents to yield 1.685 percent, while the 10-year bond CA10YT=RR rose 12 Canadian cents to yield 3.209 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)