Canada’s dollar held near recent gains as Brent topped $110 a barrel, highlighting the divided effect of higher oil prices on an economy that exports energy but faces added fuel and inflation pressure.
FXStreet reported that one U.S. dollar bought about C$1.4060 during Asian trading, in a report published at 11:18 p.m. ET Tuesday (03:18 UTC Wednesday). The quote followed Tuesday’s advance in the Canadian dollar. Bank of Canada daily averages show the U.S. dollar eased from C$1.4263 on Oct. 14 to C$1.4054 on Oct. 20, declining on each business day in between. The figures are indicative daily averages, not live trading prices.
Reuters reported Brent futures at $110.11 a barrel at 3:47 a.m. ET Wednesday (07:47 UTC), up $1.32, or 1.2%. The U.S. Energy Information Administration (EIA) has identified disrupted Middle Eastern production and restricted export routes as sources of oil-price volatility. Its Oct. 6 outlook said production shut-ins in the region averaged 4.8 million barrels a day in September, compared with 5.8 million in August, while tanker risks added to shipping costs.
Higher prices have supported Canadian energy producers. Statistics Canada valued crude oil and bitumen exports at a record C$44.8 billion in the second quarter of 2026, with rising prices amid Iran-related supply uncertainty contributing to the increase. The Bank of Canada’s latest business survey also found that elevated commodity prices improved oil and gas firms’ sales outlooks.
Fuel buyers face the other side of the price rise. Statistics Canada said gasoline prices in September were 27.8% above a year earlier, while consumer inflation reached 3.1%; excluding gasoline, the annual rate was 2.2%. The central bank’s survey found that about half of respondents expected to pass some or all costs linked to the Middle East war and tariffs on to customers. Separately, consumer-facing firms in particular expected to keep passing along earlier cost increases over the next 12 months.
The Bank of Canada left its overnight policy rate at 2.25% on Sept. 2 and warned that persistently high oil prices could spread to other prices. Its next rate decision and Monetary Policy Report are scheduled for Oct. 28 at 9:45 a.m. ET.
