Sept. 29 (Bloomberg) -- Canada’s dollar rose for the first time in three days versus its U.S. counterpart as commodities including crude oil, copper and silver advanced, strengthening the prospects for raw-materials exporters. The currency, nicknamed the loonie, headed for a gain of 3.8 percent for September. Reports showed manufacturing in China accelerated for a second month, spurring demand for commodities, and European confidence in the economic outlook unexpectedly picked up this month. “The Canadian dollar is continuing to improve following better data in China and sentiment in Europe,” Sebastien Galy, a currency strategist in New York at BNP Paribas, said via e- mail. Canada’s currency appreciated 0.3 percent to C$1.0268 per U.S. dollar at 10:12 a.m. in Toronto, from C$1.0297 yesterday. One Canadian dollar buys 97.39 U.S. cents. Copper for December delivery added 0.3 percent to $3.65 a pound. Silver for December delivery in New York rose as much as 1.7 percent to $22.075 an ounce, the highest price since October 1980. Crude oil for November delivery rose as much as 1 percent to $76.93 a barrel in New York. Raw materials account for half of Canada’s export revenue, and crude is its biggest export. Manufacturing accelerated in China in September, with a purchasing managers’ index released by HSBC Holdings Plc and Markit Economics rising to 52.9, the highest level in five months. An index of executive and consumer sentiment in the 16 nations using the euro rose to 103.2, the highest since January 2008, the European Commission in Brussels said. Third-Weakest The Canadian currency was poised for a 3.6 percent gain this quarter, the weakest performer after the U.S. dollar and the Taiwanese dollar among the 16-most traded currencies. Mexico’s peso is the fourth-worst. “The Canadian dollar continues to slip on the crosses as a reflection of a ‘sell North America’ trend that has been evident recently,” Shaun Osborne, chief currency strategist at Toronto- Dominion Bank’s TD Securities unit said via e-mail. The loonie is “still in a range” versus the greenback and has “not much incentive to move out of C$1.02 to C$1.0350 for the moment.” Bank of Canada Governor Mark Carney speaks tomorrow in Windsor, Ontario, about employment and the recovery. Traders will be monitoring the speech for clues about the direction of interest rates. Policy makers, who raised the key rate to 1 percent in three consecutive boosts, next meet on Oct. 19. ‘Limits’ on Divergence Carney said last week there are “limits” to how far U.S. and Canadian monetary policy can diverge. The Federal Reserve, which has held the U.S. benchmark at a range of zero to 0.25 percent since December 2008, said on Sept. 21 it’s “prepared to provide additional accommodation” to spur the U.S. economy. Carney’s remarks, available on the bank’s website at 12:35 p.m. New York time with a press conference scheduled for 1:50 p.m., will follow the release of Statistics Canada’s gross domestic product data. The nation’s economy shrank by 0.1 percent in July, the first decrease in 11 months, according to the median of 22 forecasts compiled by Bloomberg News. “GDP is expected to be weak and Carney may reference again the ‘limits’ to Bank of Canada policy independence,” TD Securities’ Osborne said. “All that could drive a little more Canadian-dollar softness.” --Editors: Greg Storey, Paul Cox To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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