CANADA FX DEBT-C$ supported by oil, fundamentals
* C$ at 98.43 U.S. cents
* Bonds prices lower as stocks head higher
TORONTO, May 12 (Reuters) - The Canadian dollar rose against the U.S. dollar on Wednesday as a steadier oil price helped support the commodity-linked currency, while the country's strong fundamentals helped drive investor interest.
The Canadian currency CAD=D4 touched a high of C$1.0154 to the U.S. dollar, or 98.48 U.S. cents as the North American session got underway and added to the strength from the quiet overnight session.
At 8:10 a.m. (1205 GMT), the currency wasn't far off from the high at C$1.0160 to the U.S. dollar, or 98.43 U.S. cents, up from C$1.0218 to the U.S. dollar, or 97.87 U.S. cents, at Tuesday's close.
With the announcement of a massive emergency aid package in Europe to stem the euro zone debt crisis, Canada's fiscal position is relatively attractive to investors. A solid jobs report last week highlighted Canada's recovering economy and has fed positive sentiment toward the Canadian dollar.
The price of oil held above $76 a barrel. [O/R]
"(The) Canadian dollar is faring very well in all of this and I expect that to continue," said John Curran, senior vice president at CanadianForex, a commercial foreign exchange dealing firm.
"Everything is pointing to strong performance for Canada, economically speaking."
Canadian government bond prices were lower across the curve as Europe debt worries eased, putting fixed income out of favor with investors, who expected firmness in North American equity markets.
Overseas stocks strengthened on signs of continued German growth and Spain's plans to cut its deficit. [MKTS/GLOB]
The two-year government bond CA2YT=RR fell 11 Canadian cents to C$98.98 to yield 2.010 percent, while the 10-year bond CA10YT=RR slipped 30 Canadian cents to C$99.00 to yield 3.620 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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