On Wednesday, the Canadian dollar jumped to one-month high against the falling US dollar, as oil prices rebounded after a sharp decline in the previous session.
USD/CAD pair was down 1.49% to 1.3813, the weakest level since January 4.
On Tuesday, oil prices sharply fell losing more than 4% amid fears that oversupply in the oil market coincides with a slowdown in global demand.
Prices also fell on the background of reduced expectations of an agreement between the Organization of Petroleum Exporting Countries (OPEC) and Russia to reduce the extraction of raw materials.
Oil regained the position on Wednesday, strengthening demand for risky Canadian dollar, but growth is likely to be limited amid persistent concerns about oversupply in the world market.
The Canadian dollar jumped against the US dollar after falling to a low from 20 January 2003.
The demand for the Canadian dollar rose on data showing that in November, the Canadian economy has resumed growth after three months of decline since last month the Bank of Canada upheld the interest rate unchanged at 0.5%.
Dollar ignored the positive US data on employment in the private sector.
ADP reported that the US private sector had created 205 000 jobs last month, exceeding economists forecast of 195 000.
Markets are using ADP data as the main reference until official statistics of the Ministry of Labour concerning number of employees in both the public and private sectors, scheduled for Friday.
Economists expect Friday's report will show that in the past month has been created 190 000 jobs after a 292 000 growth in December.
Later today, the US is to publish data on business activity in the services sector.
USD index, which shows the relationship of the US dollar against a basket of major currencies, was down 0.62% to 98.25.