* C$ rises to 96.08 U.S. cents
* Reports say China exports up 50 percent
* Canadian bonds prices dip as safely bid unwinds
By John McCrank
TORONTO, June 9 (Reuters) - Canada's dollar rose to its highest level in five days against the U.S. dollar on Wednesday, fueled by news of stronger-than-expected Chinese exports in May, indicating strength in the global economy.
Canada is a major exporter of oil and other commodities, so when prospects for global growth improve, the Canadian dollar often strengthens.
At 8:40 a.m. (1240 GMT), the currency was at C$1.0408 to the U.S. dollar, or 96.08 U.S. cents, up from Tuesday's North American finish of C$1.0485 to the U.S. dollar, or 95.37 U.S. cents.
"It's been pulled up a little bit along with the other commodity currencies by stories that we've seen overnight about Chinese exports," said Adam Cole, head currency strategist at RBC Capital Markets in London.
Chinese exports in May grew about 50 percent from a year earlier, a senior government official told an internal investor conference on Wednesday, sources present at the meeting told Reuters. The data is due out on Thursday. [ID:nBJD003776]
"The expectation was for 30 percent and that generally is giving a bid to riskier assets and riskier currencies and cyclical currencies, etcetera, etcetera -- a kind of a knock-on effect through growth expectations globally," said Cole.
Investors, however, remained on edge over the sovereign debt problem in Europe and if there is another bout of weakness in the equity markets, Canada's currency would likely weaken off, Cole said.
The economic worries in Europe have hit the euro hard, and the Canadian dollar on Wednesday hit C$1.2511, or 79.93 euro cents, its strongest level since October 2000 against the single currency.
There is no major Canadian data due on Wednesday.
In the United States, market participants will monitor comments from U.S. Federal Reserve Chairman Ben Bernanke, who is scheduled to testify before the House Committee on the budget at 1400 GMT.
Bank of Canada Governor Mark Carney gives a speech in Montreal on Thursday morning on "The G20's Core Agenda to Reduce Systemic Risk," followed by a press conference.
CANADA BOND PRICES DIP
Canadian bond prices edged lower across the curve, mirroring U.S. Treasuries, as investors cautiously unwound safety bids with U.S. stock futures pointing to a positive open. [US/]
The two-year Canadian government bond CA2YT=RR was down 9 Canadian cents to yield 1.715 percent, while the 10-year bond CA10YT=RR fell 17 Canadian cents to yield 3.343 percent. (Reporting by John McCrank; Editing by Theodore d'Afflisio)