The Canadian dollar rebounded against its U.S. counterpart on Friday, recouping some of its weekly decline, as higher-than-expected jobs data bolstered expectations of further rate hikes by the Bank of Canada.

The loonie was trading 0.4% higher at 1.3650 per greenback, or 73.26 US cents, extending its recovery from a six-month low of 1.3785 the previous day.

It fell 0.5% for the week as rising bond yields spooked investors worldwide.

Canada’s economy more than tripled expectations with the creation of 63,800 jobs in September and wages continued to rise, data showed, raising the chances of another rate hike.

“With today’s report, higher longer-term interest rates from the Bank of Canada appear appropriate,” said Michael Greenberg, portfolio manager at Franklin Templeton Investment Solutions.

Money markets estimate the likelihood of tightening during the Bank of Canada’s next monetary policy announcement on Oct. 25 at about 40%, up from 28% before the data was released.

U.S. job growth also rose in September, but the greenback failed to maintain its earlier gains against a basket of major currencies.

Analysts are sticking to their bullish forecasts for the Canadian dollar for next year, arguing that the currency is undervalued and could benefit from close economic ties between Canada and the United States, according to a Reuters poll.

Oil prices, one of Canada’s main currencies, rose 0.6% to $82.79 a barrel, recouping some recent losses, while Canadian government bond yields rose across most of the curve.

The 10-year yield rose 2 basis points to 4.155%, but remained below the 16-year high it reached Tuesday at 4.292%. (Reporting by Fergal Smith; Editing by Andrea Ricci and Sandra Maler)