* C$ rallies to high of 91.32 U.S. cents
* Commodities and U.S. data help fuel gain
* Bond prices mixed (Adds details)
By Frank Pingue
TORONTO, May 29 (Reuters) - The Canadian dollar rose to its loftiest level versus the U.S. currency in nearly eight months on Friday, boosted by higher commodity prices and a skid in the greenback as investors took on riskier assets.
After hoarding U.S. dollars during the worst of the global financial crisis, investors have now opted to dump the currency due to continuing signs that the worst of the global recession may have passed.
The Canadian dollar's latest charge followed release of a revision to U.S. first-quarter gross domestic product data to a drop 5.7 percent. This was better than the 6.1 percent estimated by the U.S. government last month. [ID:nN28352285]
That helped the Canadian dollar rise as high as C$1.0950 to the U.S. dollar, or 91.32 U.S. cents, its highest level since Oct. 7.
Other factors helping to fuel the commodity-linked Canadian dollar's rally were a jump in oil prices to a six-month high and a three-month high in gold prices.
"Everything is positive for the Canadian dollar at the moment," said David Bradley, director of foreign exchange trading at Scotia Capital. "Gold is bid, oil is bid, equity futures are higher and general weakness in the U.S. dollar is helping."
Data that showed Canada's current account deficit widened to a record high in the first quarter as the global recession shrank the country's goods surplus did not have any noticeable drag on the Canadian currency. [ID:N29257696]
At 9:45 a.m. (1345 GMT), the Canadian unit had retreated slightly to C$1.1005 to the U.S. dollar, or 90.87 U.S. cents, which was still above Thursday's close of C$1.1148 to the U.S. dollar, or 89.70 U.S. cents.
Canadian bond prices were mixed across the curve but pared some of the losses on the long end as the revisions to the U.S. first-quarter GDP data were below market expectations for a 5.5 percent contraction.
The bigger U.S. Treasury market, which often influences movements in Canadian bonds, recouped some more of the losses it has suffered recently on concerns about the growing supply of U.S. government bonds.
The benchmark two-year government bond was up 4 Canadian cents at C$99.99 to yield 1.257 percent, while the 10-year bond was down 10 Canadian cents at C$102.25 to yield 3.481 percent.
The 30-year bond fell 10 Canadian cents to C$115.40 to yield 4.073 percent. (Editing by Peter Galloway)