The Canadian dollar hit the 80-U.S.-cent level for the first time since October 20, 2017, as firming oil prices paired with broad-based U.S. dollar weakness gave the currency a boost.

The loonie has found support in recent weeks as a number of geopolitical events help put a floor beneath oil, including the civil unrest in Iran which has kept crude prices near a 30-month high.

That, combined with growing speculation the Bank of Canada may pull the trigger on another interest rate increase at its January 17 meeting has helped bolster the dollar. Markets are currently pricing in about a 45 per cent chance Stephen Poloz will increase the benchmark rate to 1.25 per cent at that meeting. 

The loonie traded at 79.96 U.S. Cents as of the market close at 4 p.m. ET, up 0.39 cents from the previous close.