The Canadian dollar Wednesday closed above parity with the U.S. currency for the first time in 22 months, since July 28, 2008.

The loonie finished up .27 of a cent at 100.08 cents US.

The Canadian dollar briefly traded above parity on April 6. (Paul Chiasson/Canadian Press)

Sacha Tihanyi, currency strategist at Scotia Capital, told CBC News above parity is a "fair valuation for the currency," and predicted the Canadian dollar would continue to strengthen through the rest of this year "on a fairly sustained manner."

Tihanyi attributed the timing of the close above parity to the fact that both financial markets and commodity prices were stronger Wednesday.

Oil, a major Canadian export, rose more than two per cent, with the May contract for light sweet crude closing up $1.79 a barrel to $85.84 US in New York.

"The rebound in oil back to close to $85, $86 (US) a barrel was definitely a good driver for the Canadian dollar," said Tihanyi.

The dollar opened Wednesday just above parity, at 100.18 with the U.S. dollar, after hovering below the symbolic number for nearly a week. That was up more than one-third of a cent from Tuesday's close.

The dollar briefly rose above par with the U.S. currency last Tuesday but did not close above that level.

In a CBC News survey of the big five Canadian banks, the predictions are not for a sky high Canadian dollar. All five expect it will go up through this year, then back down next year. (See table.)

Canada's currency is one of many that have risen against the American dollar, which has been dragged down by the weakened U.S. economy and the huge deficits that Washington has amassed while fighting the recession.

The rising Canadian currency has been interpreted as a sign of the country's rebounding economy, though manufacturing exporters fear a stronger dollar could hurt their international competitiveness.

With files from the CBC's Kerry Johnston and The Canadian Press