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By Frank Pingue
TORONTO, April 7 (Reuters) - The Canadian dollar stormed more than 1 U.S. cent off its early low versus the greenback on Tuesday as equities briefly showed signs of rebounding, whetting appetite for risk.
The Canadian dollar shot as high as C$1.2331 to the U.S. dollar, or 81.09 U.S. cents, up from an early low of C$1.2486 to the U.S. dollar, or 80.08 U.S. cents.
A skid in oil prices and nagging concerns about the health of the global economy rattled global stock markets on Tuesday and pushed investors to the safe-haven U.S. dollar.
But when stocks temporarily bounced off their lows, it sparked a surge in the Canadian currency. When the turnaround in stocks fizzled, the Canadian dollar held on to its gains.
"Some moderation in risk aversion supported the initial move stronger in the Canadian dollar and as it moved stronger it tested the overnight low," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
"But since then equities have again turned around and are heading lower, so I would question the sustainability of the stronger Canadian dollar move for the remainder of the day."
At 12:20 p.m. (1620 GMT), the Canadian unit was at C$1.2347 to the U.S. dollar, or 80.99 U.S. cents, up from C$1.2385 to the U.S. dollar, or 80.74 U.S. cents, at Monday's close. (Editing by Peter Galloway)