CANADA FX DEBT-C$ gets boost as commodities, equities rally
* Canadian dollar bounces off Tuesday's 4-year low
* Higher commodity prices support rise in Canadian dollar
* Short-end bond prices up on talk of interest rate cuts
TORONTO, Oct 29 (Reuters) - The Canadian dollar climbed versus the U.S. dollar on Wednesday on rising prices for Canadian commodities such as oil and gold and a rally in equity markets helped the currency move further off the four-year low.
Bond prices were mostly higher as an interest rate cut in China and a likely U.S. rate cut later on Wednesday sparked some demand for more secure government debt.
At 9:25 a.m. (1425 GMT), the Canadian unit was at C$1.2600 to the U.S. dollar, or 79.37 U.S. cents, up from C$1.2827 to the U.S. dollar, or 77.96 U.S. at Tuesday's close.
Earlier the currency rallied 2.3 percent to C$1.2544 to the U.S. dollar, or 79.73 U.S. cents, from the previous session's closing level as provided by the Bank of Canada.
Higher prices for major Canadian exports such as oil and gold helped drum up demand for the currency, while improved market sentiment left investors a more comfortable holding on to higher-yielding currencies.
"Some of the traditional drivers for the Canadian dollar are certainly helping out today, most notably the bounce back in gold and oil prices," said Doug Porter, deputy chief economist at BMO Capital Markets. Continued...