CANADA FX DEBT-C$ rebounds after hitting 5-yr low as crude bounces

* Canadian dollar ends at C$1.1389, or 87.80 U.S. cents
    * Bond prices lower across the maturity curve

 (Adds strategist's comment, updates prices to close)
    By Alastair Sharp
    TORONTO, Nov 5 (Reuters) - The Canadian dollar closed higher
against the greenback on Wednesday, riding a rise in oil prices
to rebound from the five-year low it hit early in the day and
bucking a surge in the U.S. dollar to multi-year highs against a
raft of other currencies.
    The loonie, as Canada's currency is colloquially known, had
fallen sharply in recent days along with oil prices but
investors appeared cautious about the limits of the recent U.S
dollar rally ahead of a European Central Bank meeting on
Thursday and North American jobs data due on Friday.
    "In order to extend (C$ weakness) from here we'd need to see
very strong data out of the U.S." said Martin Schwerdtfeger, a
foreign exchange strategist at TD Securities. 
    He said the loonie could hit C$1.15 if the U.S. nonfarm
payrolls gain in October blasts past the 230,000 mark on Friday
and the Canadian employment report comes in weak. But if U.S.
and Canadian fortunes are reversed it could recover to the low
C$1.13s, Schwerdtfeger said.
    Oil prices jumped on rumors of a pipeline blast in Saudi
Arabia and bullish news on U.S. crude inventories. 
    The loonie is sensitive to commodity prices, which have
fallen sharply in recent weeks, due to the Canadian economy's
dependence on resource extraction and production.
    "The principal factor that's been driving it in the last two
or three sessions has been the sharp move down in crude prices,"
said Adam Cole, global head of foreign exchange strategy at RBC
Capital Markets in London.
    He pointed out that the early fall in the Canadian currency
on Wednesday was echoed by a drop in the Norwegian krone
, another resource-reliant currency, and that it was
difficult to predict how much further they could fall. 
    "I wouldn't like to try to draw a line under crude prices,"
he said.
    The Canadian dollar ended the day at C$1.1389 to
the greenback, or 87.80 U.S. cents, stronger than Tuesday's
close of C$1.1410, or 87.64 U.S. cents.
    At one point it hit C$1.1466, its weakest level since July
2009. It has dropped about 7 percent this year, mostly due to
falling commodity prices.
    A Reuters poll released on Wednesday showed that currency
strategists expect low oil prices and a tighter monetary policy
from the U.S. Federal Reserve to weigh heavily on the loonie in
the coming year. 
    The U.S. currency was also boosted by a sweeping win for
Republicans in midterm congressional elections on Tuesday.
    Canadian government bond prices were lower across the
maturity curve, with the two-year down 4 Canadian
cents to yield 1.003 percent, and the benchmark 10-year
 down 25 Canadian cents to yield 2.054 percent.

 (Editing by Peter Galloway)