July 2 (Bloomberg) -- Canada's dollar gained the most in six weeks after a U.S. private report showed the world's largest economy lost more jobs last month than economists forecast.

The Canadian dollar rose versus 13 of the 16 most-active currencies on speculation that a slowing U.S. economy will prevent the Federal Reserve from raising interest rates later this year.

``This move higher in the Canadian dollar is triggered by the disappointing employment report,'' said Matthew Strauss, a senior currency strategist at RBC Capital Markets in Toronto. ``The currency is gaining some ground it lost on Monday. Still, I don't think it'll move out of the range.''

Canada's dollar strengthened 0.7 percent to C$1.0154 per U.S. dollar at 9:46 a.m. in Toronto, from C$1.0222 yesterday. One Canadian dollar buys 98.49 U.S. cents. The currency rose the most since May 21. It declined 1.1 percent on June 30.

The loonie, as the currency is known because of the image of the bird on the one-dollar coin, has traded near parity with its U.S. counterpart this year after climbing 17 percent in 2007. It touched a 2008 low of C$1.0379 on Jan. 22, and a high of 97.12 cents per U.S. dollar on Feb. 28.

U.S. companies eliminated 79,000 positions in June, after adding a revised 25,000 the previous month, ADP Employer Services reported. The median forecast of 27 economists surveyed by Bloomberg News was for a reduction of 20,000.

To contact the reporters on this story: Haris Anwar in Toronto at hanwar2@bloomberg.netJamie McGee in New York at jmcgee8@bloomberg.net

Last Updated: July 2, 2008 09:50 EDT