By Chris Fournier Nov. 4 (Bloomberg) -- Canada’s currency appreciated for a third day, the longest winning streak in three weeks, as stocks, gold and oil rallied before a decision on interest rates by the Federal Reserve. “It seems to be a function of the risk-on trade,” said Stewart Hall, an economist in Toronto at HSBC Holdings Plc. “It’s relatively conducive to Canadian dollar strength.” The Canadian dollar posted two weekly declines after Oct. 15, when it came within three cents of parity with its U.S. counterpart. The currencies last traded on a one-for-one basis in July 2008, when crude oil reached a record C$147.27 a barrel. Canada’s currency strengthened 0.5 percent to C$1.0608 per U.S. dollar at 10:14 a.m. in Toronto, from C$1.0661 yesterday. It reached C$1.0870 on Nov. 2, the weakest level in a month. One Canadian dollar buys 94.27 U.S. cents. The Fed, European Central Bank and Bank of England are scheduled to release monetary-policy decisions today and tomorrow. The Federal Open Market Committee will likely say today it will keep the benchmark interest rate unchanged at a range of zero to 0.25 percent, according to all 96 economists in a Bloomberg survey. “The FOMC is widely expected to keep policy on hold today and leave the essential wording of its policy statement -- exceptionally low rates for an extended period -- unchanged,” Shaun Osborne and Jacqui Douglas, currency strategists in Toronto at Toronto-Dominion Bank, wrote in a note to clients today. Unchanged language “should be a positive for risk appetite” they wrote. Bonds Fall Canada’s government bonds fell, pushing the 10-year note’s yield up three basis points, or 0.03 percentage point, to 3.46 percent. The price of the 3.75 percent security due in June 2019 decreased 22 cents to C$102.36. Employers in Canada added 10,000 jobs last month, after a gain of 30,600 in September, according to the median forecast of 22 economists in a Bloomberg News survey. Statistics Canada is due to report the data Nov. 6. Bank of Canada Deputy Governor John Murray is scheduled to speak today in Prince George, British Columbia, about financial well-being. Murray’s remarks will be available on the central bank’s Web site at 10:50 a.m. New York time. Officials including Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty have voiced concern about the strength and volatility of the Canadian dollar. The currency, which reached a 15-month high of C$1.0207 on Oct. 15, lost 3 percent since the central bank intensified warnings two weeks ago that its appreciation threatens the economy. Stocks, Gold, Oil The Standard & Poor’s 500 Index advanced 1.2 percent, and the MSCI World, a benchmark index for stocks in 23 developed markets, rose 1.6 percent. December gold futures climbed to a record $1,096.20 an ounce. Crude oil for December delivery gained as much as 1.5 percent to $80.76 a barrel on the New York Mercantile Exchange. Raw materials including gold and crude account for more than half of Canada’s export revenue. Canadian business confidence, an index formulated from a survey of senior corporate officers, rose to 97.8 in the third quarter from 81.9 the previous period, according to the Conference Board of Canada.

Source