CANADA FX DEBT-C$ rises as Dubai fears wane
* Canadian dollar up at 95.60 U.S. cents
* Higher oil, metals prices boost currency
TORONTO, Dec 1 (Reuters) - The Canadian dollar rose against the U.S. currency on Tuesday morning as the price of key commodities rose and investor thirst for risk climbed along with global equities as worries over Dubai's debt problems waned.
"Risk appetite is in full swing. Less concerns about Dubai as it tries to restructure it's debts. Global equity markets are on an upswing," said Sal Guatieri, senior economist at BMO Capital Markets.
Worries about Dubai's debt waned on Tuesday, sending global stocks up sharply higher and weakening lower-yielding assets such as long-term government bonds and the dollar. [MKTS/GLOB]
The catalyst was an announcement late on Monday from Dubai World, center of the debt storm, that provided more clarity around the debt situation.
"The U.S. dollar broadly weaker and commodity prices generally higher and that provides additional support to our currency," said Guatieri.
At 8:12 a.m. (1312 GMT), the Canadian dollar was at C$1.0460 to the U.S. dollar, or 95.60 U.S, up from Monday's finish at C$1.0556 to the U.S. dollar, or 94.73 U.S. cents.
The move higher on Tuesday extends gains made in the previous session after numbers showed Canada officially exited recession. [ID:nN30349047]
Canadian bond prices were flat to lower across the curve, following U.S. Treasury debt prices lower on Tuesday as money flowed to assets perceived to be riskier. [US/] (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)
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