The Canadian dollar gained almost a cent and the Toronto stock market advanced for a fourth session Friday after a positive employment report.

The S&P/TSX composite index gained 112.4 points, or one per cent, to close at 11,547.9.

S&P/TSX composite index 3-month chart

The Canadian dollar gained 0.95 cents, closing at 96.74 cents US on growing conviction the Bank of Canada will raise rates for the second time this year on July 20.

Statistics Canada reported that the economy created 93,200 jobs last month, many more than the 20,000 that economists had expected. The unemployment rate dropped to 7.9 per cent from 8.1 per cent in May.

"There's no arguing with this strong report," said BMO Capital Markets economist Benjamin Reitzes.

"The jobs picture clearly shows that the Canadian recovery hasn't stalled yet, despite signs of slowing momentum in the U.S. and other economies."

The TSX has gained about 450 points in the last four days as investors felt last week's selloff of more than four per cent was overdone.

"Having a week where we have had a bit of a turnaround to the upside not necessarily gets us out of the woods yet," said Blair Falconer, portfolio manager at HSBC Securities.

Gold, oil also higher

The August gold contract in New York ended the day higher by $13.80 at $1,209.60 US an ounce.

Oil moved higher for a third day on indications of falling inventories in the U.S. The August crude contract on the New York Mercantile Exchange gained 65 cents to $76.09 US a barrel.

New York markets were also higher. The Dow Jones industrial average was up 58.73 points, or 0.6 per cent, at 10,197.72.

The Nasdaq composite index gained 21.05 points, or one per cent, to 2,196.45 while the S&P 500 rose 7.68 points, or 0.7 per cent, to 1,077.93.

With files from The Canadian Press