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The Canadian dollar was higher Tuesday as traders looked ahead to the next announcement on interest rates by the Bank of Canada.

The loonie rose 0.12 of a cent to 97.42 cents US.

The opinion is unanimous that the central bank will leave its key rate unchanged at one per cent. And in view of persistent economic weakness, no hikes are on the radar for the foreseeable future.

"The combination of softer inflation, slower growth and an awkward growth handoff (away from consumption towards net-trade) should work to extend the timing before the economy sees monetary stimulus removed," said Ian Pollick, Fixed Income Strategist at RBC Dominion Securities.

The Canadian dollar has lost almost three cents since the last Bank of Canada rate announcement in late January, at which time the bank signalled it was in no hurry to raise rates while cutting three-tenths of a point off its projections for growth for both 2012 and 2013, to 1.9 per cent and 2.0 per cent respectively.