The Canadian dollar shrugged off official data on Tuesday showing that building permits fell more-than-expected in August.
The greenback was pushed lower following reports last week that North Korea was preparing a long-range missile test.
There were concerns that Pyongyang could mark Tuesday, when it celebrates the founding of its ruling party, with some sort of provocation.
Meanwhile, diplomatic tensions between the U.S. and Turkey persisted following the suspension of visa services between the two countries, while Iran vowed a “crushing” response should Washington deem the Revolutionary Guards a terrorist group.
In Spain, the ruling Spanish Partido Popular warned Catalan leader Carles Puigdemont on Monday that he could be thrown in jail if he followed through with a planned declaration of independence on Tuesday.