The dollar held steady versus a basket of major currencies on Wednesday, while the Canadian currency traded near a three-week peak, drawing support after oil prices climbed to two anda half year highs.

The dollar index, which measures the greenback against a basket of six major rivals, was little changed at 93.300. The Canadian dollar last stood at C$1.2694 per US dollar, near Tuesday's peak of C$1.2684, which was the loonie's highest level since December 6.

Oil prices surged to two anda half year highs on Tuesday, boosted by news of an explosion on a Libyan crude pipeline as well as voluntary OPEC-led supply cuts. Commodity-linked currencies such as the Canadian dollar are likely to gain support on the crude rally, although it remains unclear whether there will be a sustained rise in oil prices, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore. “I think it's going to lend support...to the oil-related currencies,” he said.

“With many market participants on holiday ahead of the year-end, currency moves could be exaggerated by thin trading conditions,” Innes added. Moves among major currencies were modest with the US dollar edging up 0.1 percent to 113.31 yen, while the euro was little changed at $1.1860.

Bitcoin edged up 0.9 per cent to about $15,900 on the Luxembourg-based Bitstamp exchange. That came after bitcoin bounced on Tuesday after sliding 25 percent last week, its biggest weekly drop since 2013.