Geopolitical risks drive demand for the USD, lifting the pair to 1.4165 and ending a four-day CAD rally.
The USD/CAD pair climbed to 1.4165 during Asian trading hours, halting a four-day decline for the Canadian Dollar. The move follows a new wave of US strikes against Iran, fueling safe-haven demand for the US Dollar.
Prior to the rebound, the CAD had strengthened for four consecutive sessions, reflecting broader USD weakness. The pair’s reversal aligns with heightened geopolitical uncertainty, which typically supports the greenback as a haven asset.
No immediate market reaction data was provided, but the shift underscores sensitivity to Middle East tensions in currency markets.