DOLLAR STRENGTHENS TO 80 U.S. CENTS FOR THE FIRST TIME IN MORE THAN A YEAR.

TORONTO — The loonie broke above 80 cents U.S. Monday for the first time in more than a year amid a weakened U.S. dollar and further signs of a strengthening Canadian economy.

After steadily rising for weeks, the Canadian dollar crested above the threshold in morning trading and was bobbing around that level about an hour before markets were to close at 4 p.m. ET. It closed at 79.92 cents U.S.

The currency has gained nearly 10 per cent since early May, fuelled by brightening economic prospects in recent months that prompted the Bank of Canada to raise its key benchmark interest rate earlier this month for the first time in close to seven years. The dollar hasn’t closed above 80 cents US since June 30, 2015. There’s a 79-per-cent probability that policy makers led by Governor Stephen Poloz will increase rates again this year, according to overnight index swaps data

Earlier Monday, Statistics Canada reported that wholesale sales hit a record high in May as they climbed 0.9 per cent to $61.6 billion. Economists had expected an increase of 0.5 per cent, according to Thomson Reuters.

Isaac Holloway, an assistant professor at the Ivey Business School at Western University, said the gain in the dollar will have the biggest effect on importers and exporters, though it will likely be months before consumers see the fallout.