The Canadian dollar weakened against its US counterpart on Monday, but held near three-month highs as oil prices rose and ahead of a Bank of Canada monetary policy decision on Wednesday. The currency has rebounded roughly 10 percent since hitting a 12-year low in January at C$1.4689. At 9:47 am EST (1447 GMT), the Canadian dollar was trading at C$1.3348 to the greenback, or 74.92 US cents, weaker than Friday's close of C$1.3324, or 75.05 US cents.
The currency's strongest level of the session was C$1.3320, while its weakest was C$1.3377. On Friday, it touched its strongest since December 3 at C$1.3312. The rally has likely caught the Bank of Canada's attention, according to a research note this morning from RBC Capital Markets. Net short Canadian dollar positions decreased to 30,478 contracts in the week ended March 1 from 36,940 the prior week, Commodity Futures Trading Commission data showed on Friday. It reached a five-month high in January.