* C$ down at 92.70 U.S. cents
* Sagging world stocks hit investor risk appetite
* Bonds edge up, but investors brace for heavy issuance (Adds bond activity, updates prices)
TORONTO, Sept 21 (Reuters) - The Canadian dollar edged lower against the U.S. currency on Monday morning as commodity prices fell and lower global equities diminished investor thirst for riskier assets.
Stock markets overseasfell on Monday, pressured by lower energy and commodity prices and caution ahead of the G20 summit this week and a two-day U.S. Federal Reserve meeting. [MKTS/GLOB]
The Fed is likely to hold rates steady at its meeting, which starts on Tuesday, but markets are still eager to know if bank will soon unwind some super-accommodative programs due to a pickup in economic data.
Lower commodity prices were a driver of the Canadian dollar early in the day, reflecting Canada's resource-based economy. The price of oil, a key Canadian export, fell below $70 a barrel, while gold fell below $1,000 an ounce and base metals were largely weaker. [O/R] [GOL/] [MET/L]
"We've had a fairly significant correction in commodities and equities," said David Bradley, director of foreign exchange trading, Scotia Capital. "That's basically what's led the Canadian dollar weaker."
At 9:10 a.m. (1310 GMT), Canada's dollar was at C$1.0800 to the U.S. dollar, or 92.59 U.S. cents, down from C$1.0697 to the U.S. dollar, or 93.48 U.S. cents at Friday's close.
BONDS EDGE UP
Canadian bond prices inched up across the curve, reflecting cautious buying ahead of the Fed policy meeting and the G20 meeting.
Investors are also on guard for a near record $112 billion in shorter-dated Treasury issues due this week.
The two-year bondrose 4 Canadian cents to C$99.49 to yield 1.267 percent, while the 10-year bond gained 25 Canadian cents to C$103.15 to yield 3.365 percent. The 30-year bond advanced 35 Canadian cents to C$118.65 to yield 3.893 percent.
A report on Monday showing foreign investors reduced their overall holdings of Canadian securities in July had little impact on the market. The report also showed that foreign investment in bonds so far this year is at record-breaking levels. (Reporting by Jennifer Kwan and Ka Yan Ng; editing by Peter Galloway)
Our Standards: The Thomson Reuters Trust Principles.