* Canadian dollar drops to 93.24 U.S. cents
* Bond prices edge higher across curve
* Dubai debt concerns continue to ripple through markets
By Ka Yan Ng
TORONTO, Nov 27 (Reuters) - Canada's dollar neared a three-week low versus the U.S. currency on Friday, extending losses in a risk-averse market that has been shaken by concern about Dubai's debt problems.
Also dragging on the currency was sagging oil prices, nearly 5 percent towards $74 a barrel. Canada is a key exporter of oil and the resource's movements often provide direction for the Canadian dollar. [O/R]
Overnight, the currency stumbled as low as C$1.0750 to the U.S. dollar, or 93.02 U.S. cents, though it pared losses ahead of the North American session open.
At 7:53 a.m. (1253 GMT), the Canadian dollar was at C$1.0725 to the U.S. dollar, or 93.24 U.S. cents, down from C$1.0605 to the U.S. dollar, or 94.30 U.S. cents, at Thursday's close.
"It seems the risk trade is off the table and the Canadian dollar is suffering the brunt of that. It is one of the worst performers of the day," said Eric Lascelles, chief economics and rates strategist at TD Securities.
"Commodity prices are also off and that links into the risk-off trade. It's a double whammy for the commodity players."
Further direction may stem from Canada's current account data, due at 8:30 a.m., and is expected to show the deficit widened to C$13.35 billion in the third quarter, after posting a C$11.2 billion deficit in the second quarter.
But market liquidity may still be thin after the U.S. Thanksgiving holiday. Market players may also opt to mark time ahead of Monday's key third-quarter gross domestic figures, which is expected to herald Canada's return to slim growth. [ID:nN26398658]
Canadian bonds edged slightly higher across the curve, building on gains made in the previous session on the back of the debt concerns out of Dubai.
The two-year Canadian government bond
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
((kayan.ng@thomsonreuters.com; Reuters Messaging:
kayan.ng.reuters.com@reuters.net; 416-941-8109))
==============================================================
FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:
Canadian dollar and bonds report....[CAD/][CA/]
TSX market report..........[.TO]
Headlines from global forex markets ...[FXNEWS]
Bank of Canada stories.....[BOC]
Bank of Canada weekly t-bill auction...[CA/BIL]
Bank of Canada securities auctions.....[CA/AUC]
Bank of Canada interest rate story.....[CA/INT]
Reuters monthly Canadian dollar poll..