The Canadian dollar has continued to build on last week's record increases, ending the day at 94.48 cents US -- an increase of 0.26 of a cent from Friday's close.

Earlier in the day, the loonie traded as high as 94.77 cents US on overseas markets.

"More and more people are saying it's quite possible that by the end of this year we could see the Canadian dollar and the U.S. dollar at even par," said BBN's Michael Kane.

Economists at CIBC World Markets made the prediction first last week, pushing the Canadian dollar to 94.22 cents US on Friday -- its highest value since July 1977.

The dollar was also strengthened after the Bank of Canada indicated last week that it would likely raise interest rates to combat inflation.

The loonie is already up about nine per cent this year. Over the past five years, the dollar has jumped 43.4 per cent.

Shaun Osborne, chief currency strategist for TD Securities, told CTV Newsnet on Monday that there are a variety of factors behind the surge.

"I think there are a number of different factors driving the Canadian dollar higher, commodities are certainly part of that," he said.

"But we have to remember that the U.S. dollar is itself very weak at the moment, a number of different currencies, not just the Canadian dollar, are rising to record multi-year highs."

He said the strong Canadian economy and a wave of merger acquisitions has also pushed the dollar.

With files from The Canadian Press