CANADA FX DEBT-C$ tops 91 US cents, highest since October

* C$ rallies to high of 91.32 U.S. cents

* Commodities and U.S. data help fuel gain

* Bond prices mixed
(Adds details)

By Frank Pingue

TORONTO, May 29 (Reuters) - The Canadian dollar rose to its
loftiest level versus the U.S. currency in nearly eight months
on Friday, boosted by higher commodity prices and a skid in the
greenback as investors took on riskier assets.

After hoarding U.S. dollars during the worst of the global
financial crisis, investors have now opted to dump the currency
due to continuing signs that the worst of the global recession
may have passed.

The Canadian dollar's latest charge followed release of a
revision to U.S. first-quarter gross domestic product data to a
drop 5.7 percent. This was better than the 6.1 percent
estimated by the U.S. government last month. [ID:nN28352285]

That helped the Canadian dollar rise as high as C$1.0950 to
the U.S. dollar, or 91.32 U.S. cents, its highest level since
Oct. 7.

Other factors helping to fuel the commodity-linked Canadian
dollar's rally were a jump in oil prices to a six-month high
and a three-month high in gold prices.

"Everything is positive for the Canadian dollar at the
moment," said David Bradley, director of foreign exchange
trading at Scotia Capital. "Gold is bid, oil is bid, equity
futures are higher and general weakness in the U.S. dollar is
helping."

Data that showed Canada's current account deficit widened
to a record high in the first quarter as the global recession
shrank the country's goods surplus did not have any noticeable
drag on the Canadian currency. [ID:N29257696]

At 9:45 a.m. (1345 GMT), the Canadian unit had retreated
slightly to C$1.1005 to the U.S. dollar, or 90.87 U.S. cents,
which was still above Thursday's close of C$1.1148 to the U.S.
dollar, or 89.70 U.S. cents.

BONDS MIXED

Canadian bond prices were mixed across the curve but pared
some of the losses on the long end as the revisions to the U.S.
first-quarter GDP data were below market expectations for a 5.5
percent contraction.

The bigger U.S. Treasury market, which often influences
movements in Canadian bonds, recouped some more of the losses
it has suffered recently on concerns about the growing supply
of U.S. government bonds.

The benchmark two-year government bond was up 4 Canadian
cents at C$99.99 to yield 1.257 percent, while the 10-year bond
was down 10 Canadian cents at C$102.25 to yield 3.481 percent.

The 30-year bond fell 10 Canadian cents to C$115.40 to
yield 4.073 percent.
(Editing by Peter Galloway)