The loonie edged up 0.17 of a cent to 93.33 cents US.
The loonie had tumbled three-quarters of a US cent on Friday in the wake of disappointing employment data that saw the loss of 9,500 jobs in June.
The central bank is universally expected to leave its key rate at one per cent, where it has been for almost four years. That means traders will particularly focus on the bank's assessment of how the economy is performing amid rising inflation.
"We will also be looking for any comments about the recent strengthening of the Canadian dollar and the risks that it may pose for their assumption of strengthening exports," said Mark Chandler, head of Canadian FIC strategy at RBC Dominion Securities.
The currency has lately been hovering around the 94 cent US level. It had been trading around 90 cents US for much of the year but found buoyancy from rising oil prices, stronger than expected housing data and higher inflation.
Investors will also focus on monetary policy testimony from U.S. Federal Reserve chair Janet Yellen on Tuesday and Wednesday.
"While much of the impact of the semi-annual address has waned with the (Fed) now providing quarterly forecast updates, we would expect some questions on the timing of future rate increases," Chandler said.
"Also on Wednesday, the (Fed's latest regional economic survey) will be released and should, on the basis of recent job figures, be a relatively upbeat compendium of economic conditions."
Commodities were mixed as the price of oil edged higher after its biggest one-day drop since April amid growing expectations of more supplies from Libya. August crude added eight cents to US$100.91 a barrel.
Metals declined with September copper down two cents to US$3.25 a pound while August gold bullion dropped $30.70 to US$1,306.70 an ounce.