By Chris Fournier Oct. 9 (Bloomberg) -- Canada’s dollar climbed after a government report showed employers added more jobs in September than economists forecast, intensifying speculation the nation could be one of the first economies to emerge from recession. The payroll numbers are a “huge surprise,’’ said C.J. Gavsie, Toronto-based managing director for foreign-exchange trading at BMO Capital Markets, a unit of Canada’s fourth- largest bank. “The market was expecting something strong, but we’re seeing a little bit of a knee-jerk reaction. We should see trading down to the C$1.0430 level, then a quick bounce back up as the markets settle.’’ The Canadian dollar advanced 0.6 percent to C$1.0459 per U.S. dollar at 7:09 a.m. in Toronto, from C$1.0518 yesterday. The unemployment rate dropped to 8.4 percent last month from 8.7 percent in August as employers added a net 30,600 workers, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg predicted employment would increase by 5,000 positions and the jobless rate would rise to 8.8 percent, according to the median of 23 forecasts. Canada’s dollar, known as the loonie for the image of the aquatic bird on the C$1 coin, gained 16 percent this year against its U.S. counterpart as the prospects for a recovery from the worst global financial crisis since the Great Depression sparked demand for commodities. Canada draws more than half its export revenue from raw materials. The loonie will trade at C$1.07 by year-end, according to the median forecast of 36 economists surveyed by Bloomberg.

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