The Canadian dollar continued its lofty flight as it passed the US$1.10 mark on Wednesday while the U.S. dollar continued to weaken.

Shortly after the start of trading in North America, the loonie was up more than 1.75 cents at US110.27¢.

The U.S. dollar continued to lose ground against other currencies. The greenback fell to another record low of US$1.4703 against the euro, while the British pound hit US$2.1051, a level not seen since since May 1981.

Higher oil prices also helped propel the Canadian dollar. The December futures contract for light sweet crude was up US$1.27 at US$97.97 per barrel.

Gold also shot higher Wednesday, gaining almost US$22 to hit US$845.30 an ounce.