The greenback fell after US President Donald Trump said it was getting too strong and that he would prefer the Federal Reserve to keep interest rates low.
Prices of oil, one of Canada's major exports, rose after an International Energy Agency report said the market was close to balance.
US crude prices were up 0.30 percent at $53.27 a barrel.
Canadian manufacturing sales fell 0.2 percent in February after three consecutive months of increases, weighed down by declines in the vehicle assembly sector, data from Statistics Canada showed.
The decrease was not as steep as the 0.7 percent decline economists had expected, while sales volumes rose 0.1 percent.
"Canadian manufacturing is still on an upward trajectory, and will contribute solidly to GDP growth" said Bill Adams, senior international economist at The PNC Financial Services Group in a research note.
At 9:15 a.m. ET (1315 GMT), the Canadian dollar
was trading at C$1.3238 to the greenback, or 75.54 US cents, stronger than the Bank of Canada's official close on Wednesday of C$1.3273, or 75.34 US cents.
The currency's weakest level of the session was C$1.3255, while it touched its strongest since Feb. 28 at C$1.3224.
Gains for the loonie came one day after the Bank of Canada turned less dovish, saying it did not even consider cutting interest rates as it left monetary policy unchanged amid signs of strong growth.