CANADA FX DEBT-C$ turns higher as equities rebound

Wed Apr 22, 2009 11:46am EDT
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* Canadian dollar rises to 80.95 U.S. cents

* Bond prices mixed across the curve

* Market focus on Thursday's Monetary Policy Report (Adds details, quote)

By Jennifer Kwan

TORONTO, April 22 (Reuters) - The Canadian dollar shot higher on Wednesday morning as North American equity markets rebounded and oil prices steadied.

The currency, which earlier touched a low of C$1.2477 to the U.S. dollar, or 80.15 U.S. cents, pushed higher as the price of oil CLc1 trimmed losses and held around $48 a barrel.

"The risk averse sentiment has subsided and that has resulted in us moving back into commodity-based currencies," said Matthew Strauss, senior currency strategist RBC Capital Markets.

After a tentative start to the session, the resource-heavy Toronto Stock Exchange's S&P/TSX composite index .GSPTSE jumped more than 1 percent higher on energy and gold issues, while rebounding financials also lent support.

U.S. markets also bounced back on strength in big manufacturers, including Caterpillar (CAT.N: Quote) and Boeing (BA.N: Quote), while techs rose ahead of Apple's (AAPL.O: Quote) results, scheduled for release after the close.   Continued...