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 and Boeing BA.N, while techs rose ahead of Apple's AAPL.O results, scheduled for release after the close.   Continued...