The US dollar fell against a basket of major currencies as investors were rattled by signs the US presidential race was tightening just days before the Nov. 8 vote.
Losses for the greenback come ahead of a Federal Reserve monetary policy decision due later on Wednesday.
US oil prices were down 1.54 percent at $45.95 a barrel as jittery investors awaited official US crude stockpile figures after industry data showed a surprise build in inventories. Canada is a major oil exporter.
At 9:04 a.m. EDT (1304 GMT), the Canadian dollar was trading at C$1.3375 to the greenback, or 74.77 US cents, stronger than Tuesday's close of C$1.3393, or 74.67 US cents.
The currency's strongest level of the session was C$1.3360, while its weakest was C$1.3406.
Against the Mexican peso the loonie touched its strongest since Oct. 10 at 14.5148 pesos.
The peso is seen as the chief proxy for market pricing of Republican presidential candidate Donald Trump's chances of winning.
Strengthening of the Canadian dollar against the peso adds to pressure on Canadian exporters who have struggled with weak growth this year. Canada competes with Mexico for exports to the United States.
Canadian government bond prices were slightly higher across the yield curve, with the two-year up 1.5 Canadian cents to yield 0.545 percent and the benchmark 10-year rising 7 Canadian cents to yield 1.2 percent.
The market showed little reaction on Tuesday to plans by the federal government to boost spending on infrastructure projects by an extra C$81 billion over the next 12 years to revitalize a limping economy.
Bank of Canada Senior Deputy Governor Carolyn Wilkins will speak on Wednesday on a panel at a Ontario Securities Commission event in Toronto.