The Canadian dollar was slightly higher Monday morning, finding some lift after tumbling last week in the wake of a signal by the Bank of Canada that interest rate hikes likely aren't in the cards for next year.
The loonie rose 0.06 of a cent to 95.71 cents US after the central bank switched its bias from tightening to neutral while downgrading its economic outlook through 2015. The announcement sent the loonie skidding 1.5 cents US last week.
Traders also looked to this week's Federal Reserve policy meeting amid speculation on when the Fed will reduce its key monetary stimulus that has kept long-term rates low and supported a rally on many stock markets.
The Fed is currently buying $85 billion of U.S. government bonds and other securities but there are low expectations for the Fed doing anything to taper just yet.
The partial U.S. government shutdown earlier this month has delayed the release of crucial economic data the Fed would need before it decided to start to back off on those purchases.
In Canada, the major economic report of the week comes down on Thursday. Statistics Canada is expected to report that gross domestic product grew by 0.2% in August.
December crude was off two cents to US$97.83 a barrel.