* C$ rises to $1.0175
* Bonds flat-to-higher ahead of U.S. CPI (Corrects to show C$ at highest level since March, not February)
TORONTO, Feb 17 (Reuters) - Canada's dollar hit its highest in nearly three years, spurred by cautious optimism on the U.S. economy from the U.S. Federal Reserve and buoyed by a firm oil price and a positive outlook for global equity markets.
The currency jumped as high as C$0.9816 to the U.S. dollar, or $1.0187, its highest since March 2008.
At 8:15 a.m. (1315 GMT), the Canadian dollarwas at C$0.9828 to the U.S. dollar, or $1.0175, surpassing the 2011 high reached earlier this month at C$0.9832 to the U.S. dollar, or $1.0171. [MKTS/GLOB]
It was also firmer than Wednesday's North American session close at C$0.9849 to the U.S. dollar, or $1.0153.
"Although we're at new (dollar/Canada) lows, I'm not sure it's sustainable or if it's going to extend that much," said Shaun Osborne, chief currency strategist at TD Securities, but noted a push beyond C$0.98 could open the way to further Canadian dollar strength.
"There's really not that much in terms of technical resistance below these levels."
He said a sustained rally may be helped by significantly higher oil prices, or a renewed widening out in Canada/US short-term rate spreads. But he also cautioned that a stronger Canadian dollar will be noticed by the Bank of Canada.
The Canadian central bank stressed in its January policy-setting that the high-flying Canadian dollar was hampering recovery in the export sector, the backbone of the Canadian economy. [CA/INT]
Canadian bond prices were flat to higher across the curve, taking a cue from U.S. Treasuries. [US/]
The two-year Canadian government bondwas up 1 Canadian cent to yield 1.938 percent, while the 10-year bond rose 8 Canadian cents to yield 3.493 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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