3 Min Read
* C$ rises to C$1.0750 to the U.S. dollar
* Firmer commodity prices support rally
* Bond prices stuck lower across curve
By Frank Pingue
TORONTO, July 28 (Reuters) - Canada's dollar was a touch higher versus the U.S. dollar on Tuesday as firmer prices for oil and gold, coupled with optimism over a global recovery, helped to extend a recent desire for riskier assets.
During the overnight session the Canadian currency rallied as high as C$1.0750 to the U.S. dollar, or 93.02 U.S. cents, which marked its highest level since Oct. 3.
The latest rise in the Canadian dollar, now up 21 percent since falling to a four-year low in March, came as the price of oil extended its most sustained rally since last year while gold prices also firmed.
"It's just another creep toward more appetite for risk and the Canadian dollar, as usual, is perceived as a relatively riskier currency and tends to do well when that's the case," said Adam Cole, global head of FX strategy at RBC Capital Markets in London.
"So just a general growing confidence that the worst is behind us, not that there is any particular news flow to hang it on, and better commodity prices are also helping."
Cole also said the Canadian currency continued to benefit from the Bank of Canada statement last week when the central bank softened the hard tone it had taken toward a surge in the currency last month. [ID:nN21196742]
At 7:50 a.m. (1150 GMT), the Canadian unit was at C$1.0809 to the U.S. dollar, or 92.52 U.S. cents, up from C$1.0811 to the U.S. dollar, or 92.50 U.S. cents, at Monday's close.
Canadian bond prices, with no domestic data to consider until later in the week, followed the bigger U.S. Treasury market lower across the curve ahead of a U.S. sale of $42 billion of two-year paper later in the session.
Data due for release in Canada on Thursday is expected to show a rise of 0.3 percent in producer prices for June, while raw materials prices for June are expected to rise 3.0 percent. (Editing by Theodore d'Afflisio)