Coffee gained for the third straight day boosted by the declining dollar that made commodities traded in New York more attractive for investors holding other currencies, coupled with low bean exports from Brazil.

The dollar declined by 1 percent against other major six currencies.

Arabica coffee for July delivery increased by 1.4 percent or 1.85 cents to $1.3835 a pound on ICE Futures U.S., formerly the New York Board of Trade.

Brazil, the world's largest coffee grower shipped 837,991 bags of Arabica beans this month, 11 percent less than the 936,523 shipped in the same period last month.

The Brazilian government forecasted to harvest 44.2 million bags by the end of this month, 31 percent higher than 33.7 million harvested last year.

Coffee posted the highest gain on Feb. 29, when it increased as high as $1.719 a pound after the hedge funds increased stakes in commodities.