Loonie higher as oil gains ground Friday

A rise in oil prices helped push the Canadian dollar up higher on Friday.

In late morning trading, the loonie was up 0.34 of a cent at 78.91 cents US after having cracked the 79-cent mark earlier in the day.

The price for light sweet crude oil was up 99 cents US at $44.17 per barrel on commodities markets.

The loonie's rise also came following the release of two pieces of economic data — a much better than expected report on Canadian retail sales for February, and a consumer price index report showed the so-called  "core" inflation rate  increased in March to 2.1 per cent, which economists said is still hovering near the Bank of Canada's target.

Not a big threat

"Canada's economy certainly has its growth challenges ahead, but the recent rally in the Canadian dollar isn't a major threat to the economic growth outlook, partly because it has been  accompanied by a rebound in oil prices, which is a positive," research company Capital Economics said in a commentary.

Most countries that are key exporters to the United States have seen their currencies rebound against the US dollar, although not to the same extent as the loonie, Capital Economics said.

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