CANADA FX DEBT-C$ hits fresh 7-mth high, bonds slip
* C$ pushes to 88.88 U.S. cents, strongest since Oct. 9
* Bonds slightly lower on supply concern
TORONTO May 22 (Reuters) - The Canadian dollar hit a fresh seven-month high versus the U.S. dollar on Friday, spurred by market worries about the triple-A credit ratings of the United States.
The Canadian currency pushed as high as C$1.1251 to the U.S. dollar, or 88.88 U.S. cents, its strongest level since Oct. 9.
Standard & Poor's revised its UK ratings outlook lower this week, fueling jitters that Washington's growing deficit could lead to a credit rating downgrade for the United States. [ID:nLL180301]
But Moody's Investors Service said it is comfortable with its triple-A sovereign rating on the United States, although the rating was not guaranteed forever. [ID:nN21313143]
Still, the U.S. dollar was on the decline against a broad range of currencies, and the dollar index hit its lowest in five months against a basket of currencies. [FRX/]
"It's a cocktail of a whole load of different factors that are all pushing in one direction," said Adam Cole, global head of FX Strategy at RBC Capital Markets in London.
He said among the factors helping the Canadian dollar were pressure on the U.S. dollar, equity markets that were heading higher, and strengthening commodity markets. Continued...