TORONTO, (Reuters) – The Canadian dollar gained against the U.S. currency on Friday after domestic data showing a massive jobs increase raised expectations of a Bank of Canada interest rate rise next month.

Canada created 336,600 new jobs in February. This is more than the 160,000 predicted by analysts. However, the unemployment rate was below pre-pandemic levels. Businesses were freed from Omicron restriction and the government allowed them to resume business.

At the announcement of April 13, the probability of an increase in interest rates by 50 basis points was 45%, as opposed to 37%.

The BoC normally moves in 25 basis-point increments. Last week was no exception. It raised its benchmark interest rate from 0.2%, a new record low, and it experienced its first major hike in three decades.

Canadian dollars rose 0.5%, to 1.2700 per greenback (or 78.74 U.S. cenes), after trading within a range between 1.2695 and 2.2794.

After a Tuesday low of 1.2901, it was up for its third consecutive day. It was up 0.2% for the week.

The loonie gained Friday as Russian President Vladimir Putin stated that there was some progress in Moscow’s negotiations with Ukraine. This lifted investor sentiment after a wild week on financial markets.

Oil, Canada’s largest export, saw a rise in the price due to continued worries about Russian oil supply disruptions and other oil product issues. Oil futures rose 1.2% to $107.29 per barrel.

Canadian government bond yields were higher throughout the curve. After reaching 1.989% on February 16, the 10-year reached its highest point at 1.989%, before dropping to 1.977%. This was an increase of 4.1 basis points.