The Canadian dollar weakens for a second day as Brent crude falls over $10 from last week’s highs, offsetting broader USD softness.
The USD/CAD pair climbed to 1.1411, just below two-week highs, as the Canadian dollar underperformed major peers. Weaker oil prices, a key export for Canada, drove the decline despite a risk-on mood weighing on the safe-haven US dollar.
Brent crude dropped to near $85.00, down more than $10 from last week’s peak, while WTI fell to $82.00. The slump in oil prices reduced speculative demand for the loonie, overshadowing the USD’s broader weakness amid easing US-Iran tensions.
Markets remain focused on Thursday’s Federal Reserve meeting, where a rate hold is expected but tone and commentary will guide near-term USD moves. A light economic calendar leaves oil and Fed expectations as key drivers.