Earlier, it had closed in regular trading above 98 cents US for the first time since Jan. 25, 1977. The Canadian dollar gained 1.36 cents to close in regular trading at 98.64 cents US.
The loonie's big move was helped along by the Federal Reserve's unexpectedly large cut in a key interest rate Tuesday afternoon.
The rate cut left the U.S. federal funds rate at 4.75 per cent, while the counterpart rate in Canada remains at 4.50 per cent. That dramatically narrowed the spread between the two rates and made Canadian dollars a lot more attractive.
Talk of "whether" the dollar would hit parity with the U.S. currency seemed to be supplanted by talk of "when" it would reach that milestone.
The Canadian dollar's rise against the U.S. greenback has been stunning — up 14 per cent so far this year and up about 60 per cent since early 2002.
How far will it go? Some pundits are saying that the Canadian dollar will hit a buck twenty U.S.. Any comments?