TORONTO: The Canadian dollar was little changed against its US counterpart on Friday as oil prices rose and domestic data showed a smaller-than-expected increase in wholesale trade, with the currency holding near an earlier three-month high.

The loonie was trading nearly unchanged at 1.2363 to the greenback, or 80.89 US cents, after touching its strongest intraday level since July 6 at 1.2337.

For the week, the currency was on track to advance 0.9%. It would be its fourth straight week of gains.

"The pro-risk mood is CAD-supportive alongside high energy prices," strategists at Scotiabank, including Shaun Osborne, said in a note.

Stocks advanced globally as strong earnings kicked off a new results season on Wall Street and fears that inflation will trigger earlier-than-expected interest rate rises eased for now.

Canadian dollar dips as inflation fears clip investor sentiment

The price of oil, one of Canada's major exports, rose to a seven-year high on forecasts of a supply deficit over the next few months as rocketing gas and coal prices stoke a switch to oil products.

US crude prices were up 0.7% at $81.85 a barrel, while the US dollar gained ground against a basket of major currencies as data showed US retail sales climbing in September.

Domestic data showed that wholesale trade rose by 0.3% in August from July, falling short of the 0.5% increase analysts had forecast.

Global supply chain bottlenecks are not easing as quickly as expected, meaning inflation in Canada and among IMF members will probably take a little longer to come down, Bank of Canada Governor Tiff Macklem said on Thursday.

Canadian government bond yields were higher across the curve on Friday, tracking the move in U.S. Treasuries. The 10-year rose 4.6 basis points to 1.583%.