TORONTO – The Canadian dollar was stuck below parity with the U.S. dollar Friday on worries about the fallout from a string of tax hikes and deep spending cuts set to automatically go into effect in the U.S. at the end of the year.

The loonie fell 0.23 of a cent to 99.73 cents US as worries about the knock-on effects from those hikes and cuts sent traders to the perceived safe haven of U.S. Treasuries.

Unless Democrats and Republicans can come together and arrange a deficit-cutting compromise, tax increases and spending cuts totalling US$600 billion will automatically come into effect — a so-called “fiscal cliff” that would likely tip the U.S. back into recession and drag down other economies with it, including Canada’s.

Bank of Canada governor Mark Carney said Thursday that the fiscal cliff is the most imminent threat facing the Canadian economy.

Commodity prices were lower, depressed by demand concerns and the higher greenback.

The December crude contract on the New York Mercantile Exchange was down 84 cents to US$84.25 a barrel.

Copper, viewed as an economic barometer as the metal is used in so many applications, dropped five cents to US$3.42 a pound.

December gold bullion rose $4.80 to US$1,730.80 an ounce.

Prices for metals and oil failed to find lift from positive Chinese economic data. Auto sales, consumer spending and factory output in the world’s second-largest economy all improved in October.

The European debt crisis also kept traders on edge as cash-strapped Greece said it would issue unusually short-term debt on Tuesday in the hope of raising enough money to make a key bond repayment days later.

It will issue €2.1 billion in four-week treasury bills and €1 billion in 13-week bills.

Greece is not expected to get its next batch of international rescue loans by Nov. 16, when it has to roll over €5 billion in three-month treasury bills.

Meanwhile, the Greek parliament is to vote on a new budget containing a fresh slew of austerity measures on Sunday.