CANADA FX DEBT-C$ rises as risk appetite improves
* C$ gets boost alongside rise in global equities
* Moves further off Monday's low of 85.62 U.S. cents
By Frank Pingue
TORONTO, July 7 (Reuters) - The Canadian dollar was a touch higher versus the U.S. currency on Tuesday morning, helped by a a better appetite for risk as global equities rebounded after a meaty selloff in the prior session.
At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.1562 to the U.S. dollar, or 86.49 U.S. cents, up from Monday's close of C$1.1591 to the U.S. dollar, or 86.27 U.S. cents.
The move higher came as global equities turned higher and U.S. equity futures pointed to a slightly higher open one day after Toronto's main stock index fell 2.5 percent.
"It's more just a general risk backdrop and people are more comfortable with risk after yesterday's sharp equity selloff," said David Watt, senior currency strategist at RBC Capital Markets. "But it's a relatively minor move and I just think we'll trade in a range right now."
The move higher added to momentum from late in Monday's session and helped lift the Canadian dollar further off the seven-week low of C$1.1680 to the U.S. dollar, or 85.62 U.S. cents, that it hit on Monday.
Domestic bond prices were lower across the curve as the better appetite for risk left little demand for more secure assets like government debt.
(Editing by Chizu Nomiyama)
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