Supported by BHP Billiton’s takeover bid for Canada’s Potash Corp., the Canadian dollar rallied against its US counterpart for a second day on Wednesday.

A day after Potash’s board rejected the $39 billion takeover offer—the largest so far this year—as “grossly inadequate,” BHP took it directly to shareholders on Wednesday.

Since a successful offer from any international player would result in the purchase of Canadian dollars, the bid by Anglo-Australian BHP—the world’s biggest miner—has boosted the currency.

To pay for the tens of millions of Potash shares held by Canadian investors, the suitor could either buy Canadian dollars or pay in US dollars and leave the conversion up to shareholders.

BHP’s $130 a share offer has sent Potash stock soaring as investors anticipate it may become richer.

Steve Butler, director of foreign exchange trading at Scotia Capital, “One thing that is clear, it seems like the spot market likes to react first and ask questions later so we’ve definitely seen Canada doing better and Aussie underperform on the back of the news yesterday.”

(Thanks to Reuters and Wikipedia)