The US dollar's gains faltered as markets moved into the European session, which saw the Canadian dollar continue to receive support from higher oil prices.
OPEC shocked the market earlier in the week by cutting output by 1.16 million barrels a day from May until the end of 2023.
As a result, oil prices surged and drove the Canadian dollar to trade stronger at a 6-week high against the US dollar.
The US dollar benefited from a cautious market earlier in the week, but pared back some of those gains at the opening of the European session.
The dollar index, which measures the greenback's strength against six major currencies, traded slightly lower at 102.70.
Investors are now looking forward to the release of US ISM survey manufacturing PMI data which will be released in the upcoming New York session.
In the meantime, the Aussie dollar once again erased the losses displayed in the Asian session with the focus now on the Reserve Bank of Australia (RBA) policy meeting on Tuesday.
Meanwhile in Europe, the euro and the pound rose slightly from earlier falls, benefiting from the depreciation of the US dollar.
However, more clear movements in the market are expected to be seen in the New York session with the opening of the US stock market and data to be published.
On the other hand, the swiss franc weakened after inflation data released showed Swiss consumer prices fell in March.
