CANADA FX DEBT-C$ hits highest level since Oct 2008
* Greater risk appetite sparks C$ rally
* Rise follows 3 percent rise last week
* Bond prices stuck lower across curve
By Frank Pingue
TORONTO, July 27 (Reuters) - The Canadian dollar rallied to its highest level in over nine months versus the U.S. dollar on Monday morning as a general appetite for riskier assets helped support commodity-linked currencies.
The Canadian dollar rose as high as C$1.0778 to the U.S. dollar, or 92.78 U.S. cents, which marked its highest level since Oct. 3. It backed off slightly but remained above the previous session's close.
"It's part of a broader risk appetite move that is supporting the Canadian dollar," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
"We're just seeing a general follow through from last week. It's a continued belief that we've seen the worst of the crisis and that a slow recovery is materializing."
At 8:00 a.m. (1200 GMT), the Canadian unit was at C$1.0792 to the U.S. dollar, or 92.66 U.S. cents, up from C$1.0829 to the U.S. dollar, or 92.34 U.S. cents, at Friday's close.
The rise in the domestic currency follows its 3.1 percent climb last week and came alongside rallies in commodity-linked currencies like the Australian dollar.
Oil prices rose to their highest level in more than three weeks, while gold shot to a new 6-1/2 week high. The domestic currency's direction is often influenced by oil and gold prices given the nature of Canada's exports.
Canadian bond prices, with no domestic data to consider, were pinned lower across the curve as the recent arrival of upbeat earnings results lessened the appeal of more secure assets like government debt.
With no domestic data due out until later in the week, Canadian bond prices will likely take their direction from the bigger U.S. Treasury market and from equities. (Editing by Theodore d'Afflisio)
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