Canada’s dollar advanced versus its U.S. counterpart as Italy drew more offers than available bonds in an auction, easing speculation the country may not be able to fund itself and boosting appetite for higher-yielding assets. The currency appreciated for a fourth day, the longest string of gains since July, trimming its monthly loss to 2.7 percent. Economists predict a report today will show the nation’s current account deficit narrowed. “The Canadian dollar seems to be doing better with risk sentiment overall,� Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc, said in an e-mail message. “The Italian bond auction helped sentiment because it gave Italy a slight breather.� Canada’s currency gained 0.5 percent to C$1.0294 per U.S. dollar at 8:02 a.m. in Toronto. One Canadian dollar buys 97.14 U.S. cents. Canada’s current account deficit narrowed to C$11.1 billion ($10.8 billion) in the third quarter, from C$15.3 billion in the prior three months, according to the median of 17 estimates in a Bloomberg survey. Statistics Canada releases the report at 8:30 a.m. in Ottawa. To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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