By Chris Fournier Nov. 21 (Bloomberg) -- Canada's currency rose for the first time in four days as global stocks rebounded. ``Today we have a reprieve'' in the Canadian dollar, said Richard Briggs, a Montreal-based vice president at MF Global Canada & Co., a unit of MF Global Ltd., the world's largest broker of exchange-traded futures and options. ``Rebound is the key word after a huge move yesterday. Stock markets are up.'' Canada's dollar strengthened as much as 1.7 percent to C$1.2746 per U.S. dollar, from C$1.2962 yesterday, when it fell 3.2 percent. It traded at C$1.2799 at 8:54 a.m. in Toronto. One Canadian dollar buys 78.06 U.S. cents. Briggs predicts the Canadian dollar will weaken by year-end because ``the major forces are still at work'' as commodity prices crumble and investors sell riskier assets. The Canadian dollar has lost 3.3 percent this week after crude oil fell below $50 a barrel. The loonie, as the currency is known for the aquatic bird on the one-dollar coin, is trading near a four-year low. Canada's dollar is headed for its sixth straight monthly drop, the longest losing streak in 15 years. Crude oil, which accounts for a tenth of Canada's export revenue, has dropped 65 percent from a record $147.27 a barrel on July 11. The MSCI World Index added 0.7 percent to 777.01, trimming this week's decline to 12 percent. The gauge of stocks in 23 developed nations fell 6.1 percent yesterday. `Pointing North' ``Stock markets are pointing north today after a simply brutal session yesterday,'' Doug Porter, a senior economist for BMO Capital Markets in Toronto, wrote in a note to clients. Consumer prices increased 2.6 percent from October 2007 after a 3.4 percent annual increase through September, Statistics Canada reported today in Ottawa. Annual inflation was slower than the 3.1 percent median forecast of 20 analysts surveyed by Bloomberg News. ``Today's report showed that Canada is also seeing inflation melt in real time,'' Porter wrote. ``Inflation is poised to plunge again in November. This report gives the all-clear signal to the Bank of Canada to continue cutting rates.'' The yield on the two-year government bond rose five basis points, or 0.05 percentage point, to 1.83 percent. The price of the 2.75 percent security due in December 2010 fell 9 cents to C$101.82. The 10-year note's yield rose eight basis points to 3.45 percent. The price of the 4.25 percent security maturing in June 2018 declined 73 cents to C$106.45. The 10-year bond yielded 162 basis points more than the two- year security, up from 158 basis points yesterday. The so-called yield curve reached 184 basis points on Nov. 6, the steepest since May 2004. To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

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