Loonie hovers as analysts anticipate interest rate hike

The value of the Canadian dollar fluctuated on Thursday against its southerly rival, according to a published report.

Governor Mark Carney with the central bank of Canada has been saying since April that interest rates will increase in the nation he serves, prompting one strategist to note the loonie will draw support. The value of the Canadian dollar pushed to its highest value in three months against the U.S. dollar overnight from Wednesday to Thursday.

"That should maintain a broadly supportive theme for the Canadian dollar," head of foreign exchange strategy Jeremy Stretch with CIBC in London told Reuters. "We're seeing the Canadian dollar start to move back towards the bias of thinking about top-side risks on rates."

But advances for the Canadian dollar were capped by a strong performance of the U.S. dollar, which was driven by unemployment claims in the U.S. surprisingly falling. That indicated the labor market of the world's largest economy was slightly improving.

The Wall Street Journal reports the nation's trade deficit with the global community grew in June to the Canadian equivalent of $1.82 billion, representing the biggest chasm in almost two years.