The Canadian dollar strengthened against its U.S. counterpart on Friday as higher-than-expected jobs data maintained the prospect of another rate hike by the Bank of Canada.

The loonie traded 0.4% higher at 1.3620 per greenback, or 73.42 U.S. cents, after moving in a range of 1.3609 to 1.3689.

It hit a five-month low of 1.3694 on Thursday. It was on track to post a weekly decline of 0.2%.

The Canadian economy added 39,900 jobs in August, beating estimates of a gain of 15,000, and the unemployment rate remained at 5.5%, a sign of underlying strength despite high interest rates.

Money markets estimate the likelihood of another interest rate hike by the Bank of Canada by year-end at 44%, compared to 36% before the data was released. The central bank on Wednesday left its key interest rate at a 22-year high of 5% after hikes in June and July, noting that the economy had entered a period of weaker growth.

“The jobs data is not strong enough to prompt an immediate reconsideration of the pause, but it is certainly not soft enough to rule out further increases either,” Doug Porter, chief economist at BMO Capital Markets, said in a note.

Supporting the loonie, U.S. crude oil futures rose 0.5% to $87.26 a barrel as investors focused on tightening supplies despite broader macroeconomic uncertainty, while the U.S. dollar edged slightly against a basket of major currencies fell.

The Canadian two-year yield increased by 3.3 basis points to 4.643%, while the spread between this yield and its American counterpart narrowed by 5 basis points to 29.5 basis points in favor of the American bond. (Reporting by Fergal Smith; Editing by Mark Heinrich)