The Canadian dollar reached a seven- week high versus its U.S. peer as the government approved Cnooc Ltd. (883)’s $15.1 billion takeover bid for Nexen Inc. (NXY) and tightened rules for foreign state-owned firms’ investment in Canadian companies. Canada’s dollar strengthened after Prime Minister Stephen Harper on Dec. 7 approved Chinese-controlled Cnooc’s bid while cautioning that future investment in Canada’s energy sector will only occur under “exceptional� circumstances and outlining tighter rules for takeovers. The currency gained earlier as oil, the nation’s largest export, rose from the lowest in almost three weeks as China processed a record volume of crude last month. “Odds are it will be quite positive for the Canadian dollar,� Sebastien Galy, senior foreign-exchange strategist for SG America Inc., said by phone from New York. “There’s been some reservation from Asia about capital flows and this provides some clarification that there will be regulation and not protectionism.� Galy said the Nexen decision will likely provide Canada’s dollar with some strength through the end of the year. The Canadian dollar, called the loonie for the picture of the aquatic bird on the C$1 coin, was little changed at 98.83 Canadian cents per U.S. dollar at 9:09 a.m. in Toronto after earlier touching 98.65 cents, strongest since Oct. 19. One Canadian dollar buys $1.0118. Crude-oil futures rose 0.7 percent to $86.49 per barrel in New York. To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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