CANADA FX DEBT-C$ rebounds as stocks soar, bonds fall

Tue Mar 10, 2009 4:51pm EDT
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* Canada dollar rebounds from lowest level since Sept 2004

* Citigroup memo spurs stock markets, whets risk appetite

* Bonds lower as stocks gain

* Finance minister says jobs data unlikely to be good (Updates to close)

By Ka Yan Ng

TORONTO, March 10 (Reuters) - The Canadian dollar rose against the U.S. dollar on Tuesday as the market's appetite for risk was whetted by a big gain on stock markets spurred by a Citigroup memo that built confidence in bank shares.

Early support for the currency also came from stronger oil prices, which spiked to above $48 a barrel before turning lower to close under $46.

As the price of oil receded, so did some of the Canadian dollar's advance against the greenback. The Canadian dollar hit a midmorning high of C$1.2725 to the U.S. dollar, or 78.59 U.S. cents, before paring gains. But it still finished well above Monday's close.

The Canadian currency ended at C$1.2852 to the U.S. dollar, or 77.81 U.S. cents, up from C$1.2991 to the U.S. dollar, or 76.98 U.S. cents, at Monday's close.   Continued...