TORONTO: The Canadian dollar strengthened against its US counterpart on Thursday as oil prices rose and data showed Canada's exports increasing sharply in June, with the currency clawing back some of its decline over the past week.

The loonie was trading 0.2% higher at 1.2514 to the greenback, or 79.91 US cents, after trading in a range of 1.2494 to 1.2547.

Since last Thursday, the loonie has weakened 0.6% along with lower prices for oil, one of Canada's major exports.

US crude prices were up 0.2% at $68.29 a barrel, but stayed near a two-week low as concern that surging COVID-19 cases in some countries would reduce demand offset the market impact of rising Middle East tensions.

Canada unexpectedly posted a trade surplus of C$3.2 billion in June, the largest in almost 13 years, as exports jumped 8.7% on higher shipments of oil and autos, Statistics Canada data indicated. Canada's jobs report for July is due on Friday which can offer clues on the Bank of Canada policy outlook.