Canadian dollar touches 80 cents US

The loonie's rally has seen it riseabout 12 cents against the U.S. greenback since January, including a gain of 2.75 cents in April. The dollar finished Friday flat at 79.69.

• Canada's economy pulled back in February after blistering January pace
• U.S. economy expanded by just 0.5% in first quarter, new data shows

BMO Capital Markets said the run-up in the price of oil has accounted for least halfof the loonie's recent appreciation.

The price for benchmark North American crude oilfinished Friday down11cents US at$45.92 US perbarrel, although, forthe month of April, the price for West Texas Intermediate (WTI)gained just over 20 per cent.

Oil bottomed out back in January around $27 a barrel.

In a Fridaycommentary, ScotiabankEconomicssaid oil prices are forecast to continue rising. Scotiabank sees WTI reaching $45 to $50 US per barrel by the end of the year, but pointed out it sees a risk of a near-term retreat.

"Prices may fall again before continuing theirgradual path back to finding new equilibrium levels," Johnston said.

TheCanadiandollar, whichhasn't closed above 80 cents since June 30 of last year,is "the third best performing major currency this year, just behind the yen and Brazilian real," said BMO Capital Markets economist Sal Guatieri in a commentary.

BMO Capital said the loonie could still gain a bitmore, but it sees the dollar pulling back to the75 to77 cent range in the second half of the year if the U.S. Federal Reserve looks like it will boost interest rates and if the oil rally loses steam.

The S&P/TSX composite indexfinished the month at13,951, for a gain of 457 points, or 3.4per cent, for the month.

On U.S markets, the Dow Jones industrial average shed 57.12 points, closing at17,773.64. The benchmark index was ahead about 88 points for the month.

The broaderS&P 500 index dipped 10.5 points to finish at2,065.30, down 10.51 points on Friday.