* C$ at C$1.0085 versus US$, or $0.9916
* Lost 1.5 pct last week after dovish Bank of Canada
By Alastair Sharp
TORONTO, Jan 28 The Canadian dollar weakened
further on Monday, bumping against a six-month low of C$1.0101
to the U.S. dollar, as investors shied away from the currency
after the Bank of Canada last week softened its hawkish tilt on
The central bank on Wednesday said it would hold rates
steady for longer than it had previously expected, with tepid
inflation data later in the week backing up that stance.
That pushed the Canadian currency to less than equal value
with the greenback, and U.S. dollar strength to start the new
week has kept the pressure on.
At 8:26 a.m. (1326 GMT) the Canadian dollar was
trading at C$1.0085 to the greenback, or $0.9916, compared with
C$1.0065, or $0.9935, at Friday's North American close. It
slipped 1.5 percent last week.
"Ultimately, the implications of that (Bank of Canada) shift
aren't as big as the market's talking about," said Greg Moore,
foreign exchange strategist at TD Securities.
But still, he said the short-term outlook pointed to further
weakness as technical considerations trump factors such as
movement in equity and commodity markets.
The currency showed little reaction to robust durable goods
data from the United States that signaled corporate investment
plans remained intact.
If the currency falls through the key C$1.01 level, it could
easily hit C$1.02 and potentially even reach C$1.03 in coming
weeks, Moore said. He saw decent resistance at C$0.9970.
The price for a two-year bond was off 2 Canadian
cents to yield 1.150 percent, while the benchmark 10-year bond
fell 13 Canadian cents to yield 1.962 percent.