By Chris Fournier Oct. 9 (Bloomberg) -- Canada’s dollar climbed to the highest in more than a year 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 Canadian currency, nicknamed the loonie for the aquatic bird on the C$1 coin, is heading for a 3.4 percent gain for the week, the biggest five-day advance since July. It’s the best performer today against the U.S. dollar among its 16 most-traded counterparts tracked by Bloomberg. “The market wanted a strong number to pound the U.S. dollar lower,” said David Watt, senior currency strategist in Toronto at RBC Capital, a unit of Canada’s biggest bank. “It got it and is running with it.” The Canadian dollar appreciated 0.7 percent to C$1.0444 per U.S. dollar at 8:12 a.m. in Toronto, from C$1.0518 yesterday. It touched C$1.0424, the strongest since Sept. 29, 2008. One Canadian dollar buys 95.74 U.S. cents. 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. 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. Canada’s dollar gained 17 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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