Canadian dollar rises again as U.S. greenback slumps

The Canadian dollar gained more traction against its U.S. counterpart Thursday, trading for a time today above 73 cents US for the first time since December.

Loonie had its best day in more than a year on Wednesday and was up again on Thursday

The Canadian dollar has been rising in the last couple of days as the U.S. greenback sold off. (Ryan Remiorz/Canadian Press)

The Canadian dollar gained more traction against its U.S. counterpart Thursday, trading for a time today above 73 cents US for the first time since December.

The loonie closed at 72.75 cents US, up 0.14 cents. Earlier in the day, it traded as high as 73.31 cents US. It was last above 73 cents on Dec. 10.

The jump comes a day after an even stronger gain on Wednesday, when the loonie gained a full 1.32 US cents, or two per cent, its biggest one-day gain in almost four years.

The loonie has been rallying along with other major world currencies in recent days, mainly due to a rush away from the U.S. dollar, which had been on a tear

"A steady stream of disappointing U.S. data this week ... have taken the wind out of the big dollar's sails," BMO economist Sal Guatieri said. "Finally, some much-needed good news for Canadian snowbirds."

The price of oil was volatile on Thursday. A barrel of benchmark West Texas Intermediate settled at $31.72 US a barrel, down 56 cents. But earlier in the trading session, it was over $33 US.

With files from The Canadian Press

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