* Canadian dollar weakens to 90.32 U.S. cents
* Bonds extend safe-haven gains
TORONTO, Aug 17 (Reuters) - The Canadian dollar fell to a one-month low versus the greenback on Monday tracking a slump in stocks and oil in a bout of renewed risk aversion.
Doubts about the pace of global economic recovery prompted the market to seek safety in the U.S. dollar, and pushed the Canadian currency to C$1.1126 to the U.S. dollar, or 89.88 U.S. cents, its lowest since July 20.
Although the currency managed to cut some of the decline by the close, the global slide in stock markets and hard-hit commodity prices, two factors that often influence the movement of the Canadian dollar, kept up the pressure.
"I think this is just going into the general concern that people have priced in too much of a recovery," said John Curran, senior vice president at CanadianForex, a commercial foreign exchange dealing firm.
The Canadian dollar closed at C$1.1072 to the U.S. dollar, or 90.32 U.S. cents, down from C$1.0998 to the U.S. dollar, or 90.93 U.S. cents, at Friday's close.
The price of oil slipped to its lowest this month at below $66 a barrel as investors became more cautious about the pace of global economic recovery and any subsequent revival in energy demand. [ID:nSYD485910]
Risk demand was stung as Chinese stocks extended losses overnight and other stock markets followed suit, including the North American markets. Toronto's main stock market opened 3 percent lower and mostly held those losses throughout the session. [ID:nTOR004875]
Market direction is likely to come from Chinese markets again, Curran said.
"People are looking to China as a growth opportunity, and Asia, going forward. If that's going to cool off, everything else is going to cool off as well," he said.
BONDS BOOSTED BY SAFETY BID
Canadian bond prices rose sharply across the curve for a second straight session as stock markets sagged and uneasiness about the strength of the recovery mounted.
The rise built on gains made on Friday after a drop in U.S. consumer confidence data persuaded investors to exit equities and seek the safety of government bonds.
The next major data for Canada is the consumer price index for July on Wednesday. While the numbers are likely to show Canada posted a second straight month of deflation on an annual basis in July, core inflation is expected to be stable, close to the Bank of Canada's 2 percent target rate. [ID:nN17379707]
The two-year Canadian bond climbed 8 Canadian cents to C$99.43 to yield 1.285 percent, while the 10-year bond rose 57 Canadian cents to C$102.82 to yield 3.408 percent.
The 30-year bond rose C$1.05 to C$118.70 to yield 3.892 percent. In the United States, the 30-year bond yielded 4.321 percent.
Canadian bonds mostly underperformed versus their U.S. counterparts across the curve, except in the three-year maturity. The Canadian 30-year bond was 42.9 basis points below the U.S. 30-year yield, versus 47.3 basis points on Friday. (Editing by Frank McGurty)
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