TORONTO, Nov 26 (Reuters) - The Canadian dollar was weaker versus its U.S. counterpart on Thursday as debt worries in Dubai and softer commodity prices sent investors in search of less riskier assets as trade thinned during U.S. Thanksgiving.
Dubai said on Wednesday two of its flagship firms planned to delay repayment on billions of dollars of debt as a first step toward restructuring Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. [nGEE5AO2L1]
"There is a lot of concern about this Dubai story and that's really hitting currencies," said Sacha Tihanyi, a currency strategist at Scotia Capital. "It's boosting the U.S. dollar and Japanese yen on risk aversion and basically hurting a lot of the rest of the majors, particularly the commodity currencies."
Gold's retreat from its record high of $1,194.90 and a 1.1 percent drop in U.S. crude oil prices also weighed on the Canadian currency. [GOL/][O/R]
At 8:30 a.m. (1330 GMT), the Canadian unit was at C$1.055 to the U.S. dollar, or 94.79 U.S. cents. It closed at C$1.0455 to the U.S. dollar, or 95.65 U.S. cents on Wednesday.
The rise in risk aversion helped boost Canadian bonds. The two-year bondrose 4 Canadian cents at C$100.23 to yield 1.133 percent, while the 10-year bond was up 22 Canadian cents at C$104.23 to yield 3.231 percent. (Reporting by Scott Anderson, editing by Jeffrey Hodgson) ((email@example.com; +1 416 941 8106; Reuters Messaging: firstname.lastname@example.org))
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