TORONTO: The Canadian dollar strengthened against its broadly weaker US counterpart on Monday as upbeat services sector data from China supported oil prices, with the loonie approaching a seven-month high it notched on Friday.

The US dollar was set for a fourth straight month of losses after a US Federal Reserve policy shift on inflation.

The Canadian dollar was trading 0.3% higher at 1.3052 to the greenback, or 76.62 US cents. The currency, which on Friday touched a seven-month high at 1.3043, traded in a range of 1.3050 to 1.3104.