The loonie was barreling toward a fourth consecutive week of gains against the U.S. dollar as investors' interests gravitated toward monetary units linked with commodities, such as the dollars of Canada and Australia. But an increase last month to the unemployment rate in the U.S., from 8.2 percent to 8.3 percent, also is likely to be among the data considered by the U.S. Federal Reserve when it plans methods of spurring the economy.
"That's got investors thinking we'll see the Fed stepping in later in the year to provide stimulus, so that's increasing risk appetite and weakening the U.S. dollar across the board," senior corporate dealer Darren Richardson with CanadianForex told Reuters.
Friday's gains for the Canadian dollar were the biggest since May 11 as it drove toward advances of 0.5 percent this week.
U.S. employment creation grew in July by 163,000, a sizable figure considering expectations were at 100,000 new jobs, according to Reuters.