World stock markets enjoyed a second day of sharp gains as signs of progress against the coronavirus in both Europe and the United States and some more liberal helpings of stimulus kept investors charging back in.
Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.
U.S. crude oil futures were up 1.4pc to $26.44 a barrel as hopes of production cuts outweighed analyst fears that a global recession in the wake of the coronavirus crisis could be deeper than expected.
At 9:08 a.m. (1308 GMT), the Canadian dollar was trading 0.9pc higher at 1.3984 to the greenback, or 71.51 U.S. cents.
The currency touched its strongest intraday level since March 27 at 1.3963, while the one-month rate for bankers' acceptances, a measure of Canadian financial system stress, was lower for the eighth straight day at 1.01pc. Still, there were signs of economic troubles to come for Canada.
Landlords across the country should brace for rent strikes in May unless the government steps in with rental subsidies for occupants as the coronavirus outbreak decimates wages, industry groups and tenants said on Monday.
Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries.
The 10-year rose 4 basis points to 0.803pc, having touched its highest intraday level since March 27 at 0.838pc.