Loonie gains a full cent to 70 cents US as oil rebounds above $29 US a barrel

The loonie was up by more than a cent to above 70 cents US at one point on Thursday. (Jonathan Hayward/Canadian Press)

The Canadian dollar gained more than a cent on Thursday as oil prices recovered from their worst one-day plunge since September.

The dollar was changing hands at 70.06 cents US nearing midday, up 1.05 cents from Wednesday's close.

The main catalyst for the loonie was a bounce back in oil, which lost more than seven per cent on Wednesday. The mood was much brighter for crude Thursday however, as the main oil contract was up by 80 cents US to $29.18.

Thursday is the day where the time period for the most heavily traded oil contract switches from February to March, and there are often wide swings when that happens.

The energy-laden TSX was buoyed by oil's rebound too, with the S&P/TSX composite index up 76 points to 11,919 nearing midday.

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