Canada on Wednesday approved its first COVID-19 vaccine, clearing the way for doses of the Pfizer Inc shots to be delivered and administered across the country as soon as next week.
Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.
Canada's dollar has strengthened 14pc against its U.S. counterpart since March, reaching a two-year high on Thursday at 1.2848 per U.S. dollar, or 77.83 U.S. cents.