July 3 (Bloomberg) -- Canada’s dollar rose, paring a weekly decline that’s been driven by signs the economic recovery is faltering and a drop in crude oil below $67.

The Canadian currency was on course for a fifth consecutive decline, the longest streak of losses since dropping for six straight weeks through Dec. 14, 2007, after the U.S. reported a larger-than-forecast number of job losses yesterday. Oil was little changed today at $66.50 after three days of declines.

“People are less optimistic about the global economy,” said Firas Askari, head currency trader in Toronto at BMO Capital Markets, a unit of Canada’s fourth-largest lender. “That has negatively affected the Canadian dollar,” he said, adding that he is still “bullish” on the currency.

The Canadian currency traded at C$1.1578 per U.S. dollar at 8:34 a.m. in Toronto from C$1.1524 at the end of last week. It rose 0.6 percent from yesterday’s close at C$1.1630. One Canadian dollar buys 86.46 U.S. cents.

Canada is among the most export-dependent countries in the Group of Seven, generating about a third of its output in the first quarter from shipments of goods and services abroad. 1The U.S. purchases about three quarters of the nation’s exports.

U.S. employers cut 467,000 jobs in June, compared with the 365,000 median forecast in a survey of economists by Bloomberg. Brent crude oil for August settlement fell as much as $2.42 cents, or 3.5 percent, on London’s ICE Futures Europe exchange this week.

Trading activity was lower than normal because U.S. financial markets are closed for the Independence Day holiday, Askari said.

To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

Last Updated: July 3, 2009 09:03 EDT