The Canadian dollar is posting modest gains against the greenback on Tuesday as global financial markets adopt a wait-and-see approach ahead of this week’s central bank meetings. The loonie, which has been one of the world’s top-performing currencies, is also rising despite the rally in energy prices taking a breather.

On Wednesday, the Federal Reserve will complete its two-day Federal Open Market Committee (FOMC) policy meeting. Economists widely anticipate the US central bank will leave interest rates unchanged and maintain its ultra-aggressive quantitative easing efforts. Despite new inflation concerns, market observers do not believe the Fed will suddenly reverse course on its unprecedented policy actions.

The Bank of England (BoE) and the Bank of Japan (BoJ) will also hold monthly meetings to discuss interest rates, QE, bond yields, and economic outlooks.

For the Canadian dollar, sliding energy prices have limited the currency’s rise as of late. April West Texas Intermediate (WTI) crude oil futures tumbled $0.67, or 1.04%, to $64.71 per barrel at 17:53 GMT on Tuesday. But April natural gas futures have risen $0.049, or 1.94%, to $2.572 per million British thermal units (btu).

Since Canada maintains a current account deficit, the national economy depends on exports for growth. Oil and gas remain the country’s top shipments to foreign markets, so any price change can have an effect on the loonie and the broader economy.

It was relatively quiet on the data front. On Monday, Statistics Canada reported that the producer price index (PPI) rose 2.5% in February, up from 2% in January. On an annual basis, producer prices surged 6.9%. Manufacturing sales advanced 3.1% in January. This week, the consumer price index (CPI) and retail sales data will be released.

The bond market was mostly in the green on Tuesday, with the benchmark 10-year yield adding 0.026% to 1.569%. The one-year bill dipped 0.03% to 0.16%, while the 30-year bond jumped 0.033% to 2.034%.

Overall, the Canadian dollar has been one of the best currencies in foreign exchange markets, surging 3% against the buck and 5% against the euro.

The USD/CAD currency pair fell 0.022% to 1.2447, from an opening of 1.2474. The EUR/CAD dropped 0.45% to 1.4813, from an opening of 1.4880.