The loonie was trading 0.3% higher at 1.2699 to the greenback, or 78.75 US cents. The currency touched its strongest intraday level since Jan. 27 at 1.2694.
Investors have pushed up the dollar recently as Democrats moved to fast-track President Joe Biden's $1.9 trillion COVID-19 relief package.
There has been an impressive pullback in US Treasury yields overnight which is causing the broad-based dollar weakness before the bond auctions this week.