* C$ falls to C$1.0247 vs US$, or 97.59 U.S. cents
* C$ lags other commodity currencies
* Bond prices mixed across curve, 2-year note up
TORONTO, Sept 28 (Reuters) - The Canadian dollar drifted
lower against its U.S. counterpart on Wednesday as riskier
assets remained vulnerable to doubts over the ability of
European policy makers to stem a debt crisis that threatens to
trigger a global recession.
The European Union confirmed negotiators would return to
Greece this week to discuss issuing its next tranche of aid,
the latest in a series of developments that have not changed
the overall picture of uncertainty in the euro zone.
While prices for oil, a key Canadian export, were lower,
the Canadian dollar was still underperforming other
commodity-linked currencies. [O/R]
"We have had a very strong rally in equity markets and
commodities over the last two sessions, but the Canadian dollar
really hasn't followed through to the extent we thought it
would," said Blake Jespersen, director of foreign exchange
sales at BMO Capital Markets.
"I would call it a lower-beta currency when you look at
some of the other commodity currencies, so it didn't sell off
as much, and it hasn't rallied as much," Jespersen said.
At 8:02 a.m. (1202 GMT), the Canadian dollar
at C$1.0247 to the U.S. dollar, or 97.59 U.S. cents, down from
Tuesday's North American session close at C$1.0204 to the U.S.
dollar, or 98.00 U.S. cents.
Jespersen noted significant Canadian-dollar support around
C$1.03 and little in the way of resistance until the currency
gets back toward parity.
Data on U.S. durable goods orders at 8:30 a.m. was expected
to drive the Canadian dollar's direction.
"We continue to see very wide price action on any data and
any headline, so markets are definitely jittery and liquidity
continues to be a bit of a concern," he added.
Bond prices were mixed across the curve. The two-year
Canadian government bond
was up 11 Canadian cents to
yield 0.962 percent, while the 10-year bond fell 8
Canadian cents to yield 2.204 percent.
(Editing by Padraic Cassidy)