* C$ finishes at C$1.0831 to the U.S. dollar
* Snaps four sessions of gains
* Pressured by equity, commodity weakness
* Bond prices flat to higher on safe haven bid
(Updates to finish, adds quote)
TORONTO, July 28 (Reuters) - Canada's dollar pulled back
from a near 10-month high against the U.S. dollar on Tuesday,
tugged lower by weak oil prices and retreating equites after a
disappointing reading of U.S. consumer confidence.
The currency fell back after racing as high as C$1.0750 to
the U.S. dollar overnight, or 93.02 U.S. cents, its highest
level since Oct. 3.
The currency fell with mostly weaker North American stocks
after U.S. consumer confidence declined more than anticipated
in July, while some quarterly results and forecasts sparked
worries about the strength of the recovery.[ID:nN28130084]
"The disappointment with the U.S. consumer confidence
numbers subsequently saw equity markets sell off and generally
risk appetite fade back," said Shaun Osborne, chief currency
strategist at TD Securities.
The Canadian currency finished at C$1.0831 to the U.S.
dollar, or 92.33 U.S. cents, snapping four sessions of gains
and down from C$1.0811 to the U.S. dollar, or 92.50 U.S. cents,
at Monday's close.
Weak oil and metals prices also helped to tug the currency
lower. Oil prices
settled lower at $67.23 a barrel,
dragged down by the consumer confidence data. [ID:nSP262574]
"Over the last two weeks, we've seen a tremendous move in
the Canadian dollar higher so I think a part of it is just a
natural give back," said Camilla Sutton, currency strategist at
But the underlying trend is still in the Canadian dollar's
favour, added Osborne.
"I wouldn't be overly concerned about a modest correction
in the currency," he said.
The Canadian dollar is up about 20 percent since falling to
a four-year low in March.
Canadian bond prices, with no domestic economic data to
consider until later in the week, mostly followed the U.S.
Treasury market higher where longer-dated debt prices rose as
money flowed out of assets seen as risky. [ID:nN28519484]
The two-year Canada bond ticked 6 Canadian cents higher to
C$99.87 to yield 1.324 percent, while the 10-year bond climbed
10 Canadian cents to C$101.50 to yield 3.567 percent.
The 30-year bond rose 45 Canadian cents to C$115.75 to
yield 4.051 percent. In the United States, the 30-year Treasury
yielded 4.5581 percent.
Canadian bonds performance versus U.S. Treasuries was mixed
across the curve. The Canadian 30-year bond was 51 basis points
below the U.S. 30-year yield, compared with about 55 basis
points below on Monday.
(Reporting by Jennifer Kwan)