The pair holds near three-week highs after a 1.7% rally, driven by declining crude prices weakening the Canadian dollar.
The US dollar remains flat against the Canadian dollar, trading above 1.3800 after climbing 1.7% over the past three sessions. The loonie’s weakness stems from falling oil prices, as Canada’s currency is closely tied to crude markets.
Prior to this rally, USD/CAD had traded in a tighter range, with the pair last testing 1.3800 in mid-July. The recent move follows a broader shift in commodity markets, where oil prices have retreated amid demand concerns.
No immediate market reaction was reported, though the pair’s stability suggests traders are awaiting further cues from energy markets or economic data.