Canadian Dollar Rises After Job Gains Point to Economic Rebound

The Canadian dollar rose for the first time in three days after employment gains in May surpassed forecasts and signaled a economic recovery is under way.

The currency strengthened against most major peers after Statistics Canada said employers added 58,900 jobs in May and the jobless rate remained at 6.8 percent. Economists surveyed by Bloomberg News projected a 10,000 job increase and an unchanged jobless rate of 6.8 percent.

The loonie, named for the image of the aquatic bird on the C$1 coin, rose 0.2 percent to C$1.2478 at 8:33 a.m. in Toronto.

The gains compare with a loss of 19,700 jobs from payrolls in April. Canada’s economy unexpectedly shrank 0.6 percent annualized pace in the first quarter, a government report showed last week. It was the first quarterly contraction in four years and the largest since the 2009 recession as a plunge in the price of oil sapped business investment.

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