* C$ rises as high as C$1.0498 per US$

* Turnaround in oil prices helps rally

* Bond prices up across the curve
(Recasts)

By Frank Pingue

TORONTO, Nov 10 (Reuters) - Canada's dollar bounced off an
early low and rose against the U.S. currency on Tuesday
morning, benefiting from momentum from the previous session and
a rally in oil prices.

The currency rose as high as C$1.0498 to the U.S. dollar,
or 95.26 U.S. cents, which was comfortably off its overnight
low of C$1.0610 to the U.S. dollar, or 94.25 U.S. cents.

The turnaround in the commodity-linked currency was being
driven mostly by a move in oil prices back above $80 a barrel
and some renewed risk appetite, given a recent pledge by the
Group of 20 to keep economic stimulus policies in place.

"Everything seems to have turned around at once here," said
David Bradley, director of foreign exchange trading at Scotia
Capital. "And it looks to me like the Canadian dollar can
probably continue to do better."

According to Bradley, the currency has the potential to
rise as high as C$1.0350 over the balance of the week now that
it has pierced the C$1.05 level.

At 10:50 a.m. (1550 GMT), the Canadian unit was at C$1.0520
to the U.S. dollar, or 95.06 U.S. cents, up from C$1.0574 to
the U.S. dollar, or 94.57 U.S. cents, at Monday's close.

The rally comes on the heels of the currency's highest
close in two weeks on Monday, thanks to the G20 promise to
maintain stimulus policies, a rise in commodity prices and a
generally weaker U.S. currency.

Tuesday's session was expected to remain quiet with no
Canadian data and only minor U.S. releases, including the
weekly Redbook data, the weekly ABC consumer confidence index
and the November IBD consumer confidence report. ECONUS

BONDS EDGE HIGHER

Canadian bond prices, with no domestic data to consider,
were slightly higher across the curve, mirroring a rise in the
bigger U.S. Treasury market.

The boost in bond prices was being aided by jitters over
Britain's credit-worthiness and weaker than expected overseas
economic data.

Toronto's main stock index was lower and U.S. equities were
flat.

The two-year bond CA2YT=RR was up 2 Canadian cents at
C$99.70 to yield 1.399 percent, while the 10-year bond
CA10YT=RR rose 14 Canadian cents to C$102.12 to yield 3.486
percent.
(Editing by Rob Wilson)