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Canadian Dollar Gains for First Time in 4 Days on China Outlook

Nov. 12 (Bloomberg) -- Canada’s dollar rose versus its U.S. peer for the first time in four days after China’s exports topped forecasts, fueling bets the Asian nation’s growth will accelerate and raising demand for currencies of commodities exporters.

The Canadian dollar, called the loonie for the image of the aquatic bird on the C$1 coin, fell last week to a three-month low. It rose today along with industrial metals and the Australian currency. Banks and government offices are closed in Canada for the Remembrance Day holiday.

“Overnight developments have been constructive for risk,” Shaun Osborne, chief currency strategist at Toronto-Dominion Bank, said in a note to clients. “Short-term trends look a little less constructive for the U.S.-Canadian dollar cross so far today, though it may be that the lack of volume leaves the markets essentially range trading for now.”

The Canadian currency advanced 0.2 percent to 99.98 cents per U.S. dollar at 8:19 a.m. in Toronto. It touched C$1.0033 on Nov. 9, the weakest level since Aug. 3. One Canadian dollar purchases $1.0002.

The loonie rose against all of its 16 most-traded counterparts except the currencies of Australia and New Zealand, nations that, like Canada, export commodities.

China’s exports jumped 11.6 percent in October, more than the 10 percent median estimate in a Bloomberg survey of 30 analysts, data from the customs administration showed Nov. 10.

The euro fell against the loonie before European finance ministers meet today in Brussels after Greek lawmakers passed a 2013 budget needed to unlock bailout funds.

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