CANADA FX DEBT-C$ off 2-week low as commodity prices gain

TORONTO, Oct 22 (Reuters) - The Canadian dollar strengthened slightly against its U.S. counterpart on Thursday after hitting its weakest level in more than two weeks the day before, as commodity prices recovered somewhat.

The loonie, as Canada’s currency is colloquially known, traded in a tight range above C$1.31, a level it hit for the first time since Oct. 6, after the Bank of Canada trimmed its growth outlook on Wednesday.

* At 7:48 a.m. EDT (1148 GMT), the Canadian dollar traded at C$1.3121 to the greenback, or 76.21 U.S. cents, stronger than Wednesday’s official close of C$1.3137, or 76.12 U.S. cents.

* The currency’s strongest level of the session was C$1.3103, while its weakest was C$1.3149.

* U.S. crude prices were up 1.31 percent to $45.79, while Brent crude added 1.38 percent to $48.51.

* Copper prices advanced 1.6 percent to $5,255 a tonne.

* The Canadian dollar was outperforming most of its key currency counterparts, including the euro, the Japanese yen and commodity-linked peer the Australian dollar.

* Canadian government bond prices were lower across the maturity curve, with the two-year price down half a Canadian cent to yield 0.537 percent and the benchmark 10-year falling 20 Canadian cents to yield 1.481 percent. (Reporting by Alastair Sharp; Editing by Jeffrey Benkoe)