CANADA FX DEBT-C$ surges on renewed risk appetite

Tue May 26, 2009 3:09pm EDT
 
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* C$ hits highest level since Oct. 8

* Upbeat U.S. data credited for rally

* Oil prices also lend support (Adds details and comments)

By Frank Pingue

TORONTO, May 26 (Reuters) - The Canadian dollar shot to its highest level against the greenback in more than seven months on Tuesday, drawing support from upbeat U.S. economic data that whetted investors' appetite for risk.

By mid-afternoon, the currency touched C$1.1163 to the U.S. dollar, or 89.58 U.S. cents, which marked its highest level since Oct. 8. It was also well above the the overnight low of C$1.1356 to the U.S. dollar, or 88.06 U.S. cents.

By 2:55 p.m. (1855 GMT), the currency had retreated slightly to C$1.1190 to the U.S. dollar, or 89.37 U.S. cents, but was still up from C$1.1235 to the U.S. dollar, or 89.01 U.S. cents, at Monday's close.

The climb by the Canadian dollar started early in the session when data from the United States showed that consumer confidence rose in May to its highest level in eight months. [ID:nN26484791]

The confidence data was the latest in a growing line of reports that have shown improved U.S. economic growth and weighed on the safe-haven status of the greenback for weeks, allowing the Canadian dollar to rally from the four-year low it hit in early March.   Continued...