OTTAWA - The Canadian dollar jumped more than a US cent Tuesday even though the Bank of Canada sent out a warning about the loonie's persistent strength earlier in the day.

The loonie reached a mid-day high of 93.36 cents US before closing at 93.34 cents, up 1.05 cents US .

This was a jump from Monday's close of 92.29 cents.

The loonie's climb came as the Toronto stock market rose to its highest point of the year amid a rise in commodity prices and consumer data from the United States that showed retail sales rose in August by the largest amount in three years.

The lower likelihood of an election call this weekend may have also nudged the dollar higher as vote-weary Canadians experienced temporary relief.

But Bank of Canada deputy governor John Murray warned that a strong loonie was a barrier to growth, which may make the road to Canadian economic recovery rougher than desired.

Murray's caution was contained in the notes of a speech delivered to a business conference in Berlin on Tuesday morning.

He said the global recovery is expected to be slow and protracted, citing high household and financial sector debt and trade impediments.

Still, Murray said Canada is enjoying several advantages over many other countries, including a sounder banking sector, low government debt and more balanced household spending.

The bank has been repeatedly warning about the dangers a strong dollar poses to Canada's industrial sector, but few economists expect governor Mark Carney to go beyond jawboning the loonie down.

The bank's official forecast for growth next year of three per cent is based on the loonie averaging about 86 cents US.