Sept. 22 (Bloomberg) -- The Canadian dollar appreciated the most in more than two weeks as a rally in commodities such as crude oil and gold boosted the outlook for the nation’s exports. The dollar rose for the first time in three days, gaining as much as 1.2 percent as global stocks rallied after the Asian Development Bank said regional economies will expand faster than initially forecast this year. Canada derives more than half its export revenue from raw materials. “Risk is back on,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto. “Commodities and energy are trading higher. The U.S. dollar is under pressure after two days of short squaring. It’s back to a much more bullish environment for the Canadian dollar.” The Canadian currency strengthened 0.9 percent to C$1.0698 per U.S. dollar at 9:32 a.m. in Toronto, from C$1.0791 yesterday and touched C$1.0661. One Canadian dollar buys 93.48 U.S. cents. The currency pared gains after Statistics Canada said the nation’s retail sales fell 0.6 percent in July to C$34.2 billion ($32 billion). Economists predicted sales would rise 0.7 percent, according to a Bloomberg News survey. The dollars of New Zealand and Australia, which like Canada’s tend to rise and fall with commodity prices, outperformed most of the 16 the most-traded currencies tracked by Bloomberg, with gains of 2.4 percent and 1.4 percent respectively, against the U.S. dollar. Canada’s currency, nicknamed the loonie, was the eighth-biggest gainer. The greenback fell against all 16 counterparts. The MSCI World Index, a gauge of equities in 23 developed nations, rose 0.9 percent. It reached a 2009 high last week. To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

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