The loonie is hovering near its highest level this year; that couldn’t come at a better time for Canadians making summer travel plans.

The Canadian dollar was at 79.06 cents US on Wednesday around 4 p.m. ET. On Tuesday, it rose 0.85 of a U.S. cent to 78.99 cents US -- the highest it has been since July 6, 2015.

But one market watcher says he doesn’t think the rally has legs.

"It's hard to see it continuing because our economy is in much worse shape than the American economy," said John Stephenson, president and CEO of Stephenson & Co. Capital Management.

Stephenson said the loonie's dramatic recovery -- helped by rising oil and metals prices as well as better economic data out of China and the U.S. Federal Reserve's decision to slow its pace of rate hikes -- has led to the currency becoming somewhat overvalued.

"It might stay up around this level for a little while, but it's unlikely to continue to be this strong for long," Stephenson said. "I don't think you're going to see much more upside. I think we're more likely to see downside from here."

Meanwhile, the Toronto Stock Exchange barely crept higher in early trading Wednesday, despite a drop in oil prices and weakness in the energy sector.

The S&P/TSX composite index was was up 44.02 points to 13,911.53 around 4 p.m. ET. 

In New York, the Dow Jones industrial average rose 43.63 points, or 0.24 percent, to 18,097.23, the S&P 500 gained 1.61 points, or 0.08 percent, to 2,102.41 and the Nasdaq Composite added 7.80 points, or 0.16 percent, to 4,948.13.