CANADA FX DEBT-C$ hits 2-wk high on rate outlook, bonds sag
* C$ rises more than a penny to 96.30 U.S. cents
* Bond prices soften across curve as risk appetite grows
* Two-year auction meets with firm demand (Updates to close)
By Ka Yan Ng
TORONTO, June 2 (Reuters) - The Canadian dollar hit a two-week high against the U.S. currency on Wednesday as healthy U.S. economic data spurred risk appetite and the market bought into the notion that the Bank of Canada will continue to raise interest rates.
Figures showing stronger-than-expected U.S. pending home sales for April provided more evidence of U.S. economic recovery. [ID:nN02163984]
That sparked on strong session on North American stock markets, which pushed the Canadian dollar to an intraday high at C$1.0371 to the U.S. dollar, a level not seen since May 18.
"It's just some reversal from yesterday's decent selloff with a little risk-on today and that clearly benefits the Canadian dollar," said Benjamin Reitzes, economist at BMO Capital Markets.
The Canadian dollar CAD=D4 closed at C$1.0384 to the U.S. dollar, or 96.30 U.S. cents, up from C$1.0540 to the U.S. dollar, or 94.88 U.S. cents, at Tuesday's close. Continued...