Gains for the loonie follow surprisingly strong domestic jobs data on Friday that boosted the argument for the Bank of Canada to raise interest rates.

Wilkins will give a speech on the economy. The central bank will release her prepared remarks at 1:20 p.m. ET (1720 GMT).

Last week, Bank of Canada Governor Stephen Poloz said he is comforted by recent signs of economic strength even as the central bank warned that rising consumer debt levels and an unbalanced housing market have raised households' financial vulnerabilities.

Prices of oil, one of Canada's major exports, rose to break a three-day losing streak after futures traders increased their bets on a renewed price upswing.

US crude prices were up 1.57 percent at $46.55 a barrel.

The US dollar dipped against a basket of major currencies ahead of Wednesday's decision by the Federal Reserve on US interest rates, while the euro was lifted by the results of elections in France and Italy.

At 9:20 a.m. ET (1320 GMT), the Canadian dollar was trading at C$1.3444 to the greenback, or 74.38 US cents, up 0.2 percent.

The currency traded in a range of C$1.3432 to C$1.3465. On Friday, it touched its strongest since late May at C$1.3424.

The foreign exchange options market is showing much less risk of a sharp drop in the Canadian dollar than before last November's US presidential election, which could spell bad news for speculators who have heavily shorted the currency.