The Canadian dollar continued to climb on Thurday as speculation grew that the Bank of Canada (BoC) is going to raise its key interest rate.

The loonie touched US77¢ for the first time since February before pulling back at the close to an average price of US76.83¢, trading 0.26 of a U.S. cent higher.

The increase was also helped by an uptick in oil prices, with the August crude contract up by US19¢ at US$44.93 a barrel.

Comments from BoC governor Stephen Poloz on Wednesday raised expectations that a rate increase could come as early as next month’s central bank meeting on July 12.

The BoC had lowered its rate twice in 2015 to the very low level of 0.5% to help offset the effects of the lower oil prices.

Chief market strategist Colin Cieszynski of CMC Markets Canada says Poloz’s remarks point to the prospective trend that central banks around the world may start moving on rates.

The U.S. Federal Reserve Board has already hiked its interest rates three times in about six months; and earlier this month, suggested it will raise rates again later this year.

“Ideally what the Bank of Canada is looking for is some kind of sweet spot for rates,” says Cieszynski. “A few years back when the loonie was up at par [with the U.S. dollar], companies were really, really struggling. When it was down in the low 70s, it was tough for consumers.”

He says he expects the Canadian dollar to “take a break” over the next few days because it has risen a full U.S. cent against the greenback in two days.

The gain in the currency came as the S&P/TSX composite index shed 142.16 points, or almost 1%, to 15,213.42, with almost all sectors ending in the red.

It was also negative session in New York. The Dow Jones industrial average lost 167.58 points to 21,287.03 and the broader S&P 500 composite index fell 20.99 points to 2,419.70.

The Nasdaq composite index dropped 90.06 points to 6,144.35 as U.S. technology companies continued to decline for another day.

Elsewhere in commodities, the August gold contract retreated US$3.30 to US$1,245.80 an ounce, the August natural gas contract dipped US5¢ at US$3.04 per mmBTU, and the September copper contract added US2¢ at US$2.70 a pound.