Oct. 31 (Bloomberg) -- Canada's dollar rose before a report that is likely to show the pace of economic growth accelerated in August.

Signs of stronger economic growth will add to expectations that the Bank of Canada will continue to raise its benchmark interest rate. The central bank on Oct. 18 raised the overnight rate to 3 percent and indicated additional interest rate increases will be coming. The October employment scheduled for Nov. 4 is expected to show the economy gained 20,000 jobs.

``The data are likely to be generally constructive for the Canadian dollar,'' said Doug Porter, senior economist at BMO Nesbitt Burns in Toronto, in a research note to clients.

Canada's dollar was higher against 12 of 16 most active currencies. It rose to 85.05 U.S. cents as of 7:45 a.m. in Toronto from 84.94 U.S. cents late on Oct. 28. One U.S. dollar buys C$1.1758.

Canada's economy probably expanded at a 0.4 percent rate in August from July, according to the median estimate in a Bloomberg survey. The government reports the data at 8:30 a.m. Gross domestic product increased by 0.2 percent in July.

Two-year government bonds fell for a fifth day in six, with the yield for the two-year maturity near the highest since May 2003 3.62 percent. The price of the 2.75 percent bond maturing in 2007 fell 4 cents to C$98.27.

The 10-year bond yielded 4.17 percent. The price for the 4.5 percent security maturing in June 2015 fell 11 cents to C$102.60.

To contact the reporter on this story: Dawn Desjardins in Toronto at ddesjardins1@bloomberg.net

Last Updated: October 31, 2005 08:01 EST