The S&P/TSX composite index moved 97.44 points higher at 14,739.20, following a big sell-off on Tuesday prompted by worries about higher interest rates in the U.S.
The Canadian dollar dropped 0.5 of a cent to 78.36 cents US, coming off of a six-year low of 78.14 cents US earlier in the day.
The Dow Jones industrials extended its decline another 27.55 points to 17,635.39 after plunging more than 300 points on Tuesday. The Nasdaq slid 9.86 points to 4,849.94 while the S&P 500 index was off 3.92 of a point to 2,040.24.
BMO Capital Markets chief economist Doug Porter said financial markets around the world have been weighing the "powerful move" in the U.S. dollar in recent weeks.
"What's driving that is the view the Federal Reserve is priming itself to begin raising interest rates at the very time the Euopean Central Bank has embarked on quantitative easing and other banks are either cutting rates or also trying to engage in stimulant measures," he said.
The U.S. dollar strength has created a ripple effect, adding pressure to gold prices which ended the session at their lowest level since early November.
The April gold bullion contract was down US$9.50 at US$1,150.60 an ounce, while the May copper contract was down a 1.8 cents at US$2.61 a pound.
Aside from pressure from the U.S. currency, the loonie is also being squeezed by the low price of oil, which has been trading at about US$50 a barrel — down from more than US$100 a barrel last summer.
The April crude oil contract settled 12 cents lower at US$48.17 a barrel on the New York Mercantile Exchange, while the TSX energy sector rose 1.4 per cent.
Technology stocks were ahead 1.3 per cent, buoyed partly on shares of Constellation Software (TSX:CSU) which jumped 3.8 per cent to $441.22.
A subsidiary of Constellation Software bought InterAct911 Corp., a computer-aided dispatch and records management company for primarily U.S. law enforcement. Financial details of the transaction were not disclosed.
In earnings, Quebecor Inc. (TSX:QBR.B) says adjusted profits at its continuing media and telecom operations rose 3.5 per cent to $50.3 million from a year earlier. On a per share basis, the results were 41 cents, below analyst estimates of 52 cents per share. Quebecor class B shares fell 44 cents to $33.29.
Air Canada (TSX:AC) has signed a codeshare agreement with Brazil's GOL Linhas Aéreas Inteligentes that will make it easier for travellers to connect through the two airlines' networks. The agreement expands an interline agreement that allows travellers to make a single reservation for flights on both airlines. Air Canada shares rose 19 cents to $12.41.
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