The loonie has regained some lost ground after plunging in international trading on Monday.
The Canadian dollar closed down 1.81 cents from Friday's close and settled at 104.26 cents US.
On Monday, the currency fell about three cents below Friday's close of about 106 cents US. However, because Monday was a holiday in some parts of Canada, there was no official closing level.
"We're getting some turbulence in the U.S. currency and that is throwing a bit of spin not only into our dollar, but also the price of gold and oil," BNN's Michael Kane told Â鶹´«Ã½net.
The Toronto stock market also rebounded Tuesday after losing more than 700 points from its main index, a six-session decline driven mainly by falling commodity and financial stocks.
U.S. financial institutions have written down the value of mortgage-backed securities, and that has some spillover effect in Canada. Some analysts fear that demand for oil and metals would fall if the U.S. economy slows.
Kane said the Royal Bank has to take a $160-million hit to its balance sheet over its exposure to subprime loans in the U.S., but also gets a credit of $270 million from the reorganization of Visa International.
The writedown is smaller than CIBC's $302 million, "but still, $160 million has got to hurt," he said.
Mining and financial stocks helped push the S&P/TSX composite index up 51.46 points to 13,656.45, after showing triple-digit gains earlier in the morning.
"People are buying on the dip, as they say," Kane said.
In New York, sagging oil prices and strong quarterly results from Wal-Mart helped push the Dow Jones industrials up 128.27 points to 13,115.82.
A key member of OPEC hinted the oil cartel might increase supply to curb rising prices.
