By KAREN JOHNSON The Canadian dollar is modestly firmer early Monday, boosted by Friday's domestic jobs report and the Canadian government's approval of two big foreign takeover deals. The U.S. dollar was at C$0.9875 Monday morning, from C$0.9884 late Friday, according to data provider CQG. Overnight, the U.S. dollar traded as low as C$0.9865, a level not seen since Oct. 19, outperforming many of its G10 currency peers. The loonie was boosted by better-than-expected November domestic jobs data and the Canadian government's announcement late Friday, approving Cnooc Ltd.'s 0883.HK +1.08% (CEO) $15.1-billion takeover of oil-sands operator Nexen Inc. NXY.T +13.91% (NXY.T, NXY) and Malaysia's Petroliam Nasional Bhd.'s $5.2 billion acquisition of Progress Energy Resources Corp. PRQ.T +13.37% (PRQ.T, PRQNF). But the currency impact was limited, and the U.S. and Canadian dollars stuck to a modest, 45-point trading range overnight. Camilla Sutton, chief currency strategist at Scotiabank in Toronto, said that although the M&A-driven currency flows that are expected eventually to result are likely to prove a near-term positive for the loonie, the government said Friday it is not opening the floodgates on acquisition attempts of Canadian oil sands properties by state-owned enterprises (SOEs). Future deals, the government said, will only be approved on "an exceptional basis." Ms. Sutton said the language is seen as "essentially, closing the door to future M&A by SOEs in the industry."

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