The Canadian Dollar holds gains against a softer US Dollar, reversing two days of losses amid improved market sentiment.
USD/CAD declined to around 1.3660 during Asian trading hours on Friday, retreating from two consecutive days of gains. The move follows a broad weakening of the US Dollar as market sentiment improves, driven by easing geopolitical tensions in the Middle East.
Earlier in the week, the pair had climbed above 1.3700, supported by a stronger USD and softer crude prices. However, Friday’s reversal aligns with a shift in risk appetite, reducing demand for the safe-haven US Dollar.
The Canadian Dollar’s resilience persists despite lower oil prices, a key export for Canada, as broader USD trends dominate near-term movements.