May 26 (Bloomberg) -- Canada's currency rebounded from the lowest level in six months versus its U.S. counterpart as crude oil climbed and global stocks advanced. Canada's dollar lost as much as 2.1 percent yesterday to C$1.0853 per U.S. dollar, the weakest level since Nov. 3, before paring that loss as North American stocks recovered from their lows for the day. The currency is the fifth-best performer this year among the U.S. dollar's 16 most-traded counterparts. "The market is starting the session 'risk on' as some of the funding issues have eased today," Steve Butler, director of foreign-exchange trading in Toronto at Bank of Nova Scotia, Canada's third-largest bank, said in an e-mail. "Yesterday's shocking comeback in the equity markets seemed to have turned everything back around." The Canadian currency rose 0.3 percent to C$1.0639 per U.S. dollar at 8:14 a.m. in Toronto, compared with C$1.0675 yesterday. One Canadian dollar buys 93.99 U.S. cents. The loonie, as the Canadian currency is known for the image of the aquatic bird on the C$1 coin, has lost 4.5 percent this month against the greenback as investors sought refuge from the European sovereign-debt crisis. It reached parity with the greenback on April 6 for the first time since July 2008. "Short-term I think all the bad news has been digested to the point of saturation," Michael Leavitt, a Montreal-based institutional-derivatives broker at MF Global Holdings Ltd., said by e-mail. "We could see a relief rally in the Canadian dollar and commodities as the risk-reward has become more appealing at these levels." Crude oil for July delivery rose as much as 3 percent to $70.79 a barrel on the New York Mercantile Exchange.

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