CANADA FX DEBT-C$ firms to 3-week high on inflation data, higher crude

* Canadian dollar hits C$1.1191, or 89.36 U.S. cents
    * Bond prices mostly lower across the maturity curve

    By Solarina Ho
    TORONTO, Nov 21 (Reuters) - The Canadian dollar powered to
its highest level against the U.S. dollar in three weeks on
Friday after Canadian inflation data came in stronger than
forecast, making an interest-rate cut by the Bank of Canada
highly unlikely.
    The currency got an early lift from higher crude prices,
which rose on a rate cut in China and on speculation that OPEC
could agree next week to reduce oil production. 
    In Canada, the consumer price index rose 2.4 percent
year-on-year in October, putting inflation at the highest level
since June and surpassing economists' forecasts for a more
modest increase of 2.1 percent. The CPI rise in September was
2.0 percent. 
    "Clearly it removes any chance of the Bank of Canada cutting
interest rates. Just on that basis, it warrants a higher
Canadian dollar," said Sal Guatieri, senior economist at BMO
Capital Markets.
    The Canadian dollar, which was outperforming nearly
all major currencies against the U.S. dollar, touched a high of
C$1.1191 to the greenback, or 89.36 U.S. cents, more than a cent
stronger than Thursday's close of C$1.1306, or 88.45 U.S. cents,
before paring some of the gains.
    At 9:26 a.m. (1426 GMT), it was trading at C$1.1234, or
89.02 U.S. cents.
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year shedding 5 Canadian
cents to yield 1.068 percent, and the benchmark 10-year
 off 9 Canadian cents to yield 2.029 percent.

 (Editing by Peter Galloway)