US stocks advanced as a Wall Street Journal report that the United States was considering lifting tariffs on Chinese imports eased investor worries.

Canada runs a current account deficit and exports many commodities including oil, so its economy could benefit from improved global trade.

Oil was pressured by fears about surging US crude production and a weakening global economy. US crude oil futures settled 0.5 percent lower at $52.07 a barrel.

At 3:37 p.m. (2037 GMT), the Canadian dollar was trading 0.1 percent lower at 1.3272 to the greenback, or 75.35 US cents. The currency touched its lowest since Jan. 8 at 1.3319.

The loonie had strengthened as much as 3.5 percent since the beginning of 2019 before giving up some gains in recent days.

The loonie's rally at the start of the year was "overdone," said Scott Lampard, head of global markets at HSBC Bank Canada, adding that the US Federal Reserve would be more active than the Bank of Canada in raising interest rates because of the stronger US economy.

Canada's economy is clawing its way through a soft patch, which will delay the next interest rate hike until at least April, according to economists polled by Reuters who said the Bank of Canada would be less aggressive in tightening credit this year.

Canada lost 13,000 jobs in December, driven by hiring declines in the trade, transportation and utilities and construction sectors, according to an ADP report released on Thursday. The November total jobs added was revised up to 74,000 from 39,100, ADP said.