The USD/CAD bulls were offered respite from the retreat in oil prices, which induced a minor correction in the loonie, after having hit fresh nine-month highs at 1.2750 in the last US session.
Overnight, the dollar rose against the other major currencies on Tuesday, after the International Monetary Fund cut its global growth forecast for the fourth time in the past year, boosting demand for safer assets.
Focus BOC monetary policy decision.
Renewed strength in the US dollar against its major peers also aided the recovery in the USD/CAD pair. Attention now shifts towards the BOC monetary policy decision due later today for next direction on the loonie.