TORONTO — The Canadian dollar is up again to its highest level since late October as the U.S. dollar continues to sink against major currencies.

The loonie rose 0.81 cents US on Tuesday to close at 95.54 cents US. It hit an intraday peak of 95.93 cents.

Rising commodity prices and a report that Canadian economy has officially dragged itself out of a recession also put extra lift beneath the loonie. Some analysts have predicted the loonie will hit parity by the end of the year.

The greenback slid against most major currencies due to signs that the U.S. economy is recovering, which is a negative factor for the U.S. dollar.

Investors tend to sell the greenback in favour of riskier, higher-yielding currencies and stocks when strong economic reports or other developments imply the economy is improving.

Also putting downward pressure on the American currency was an announcement that the Bank of Japan will provide markets with more liquidity, boosting its economy with cheap loans amid government pressure to respond to a surging yen and falling consumer prices.

The loonie has also gained strength with the rise in commodity prices such as gold, oil and minerals, which are key products of Canada's resources-based economy.