The Canadian dollar surrendered earlier gains Tuesday, FXStreet reported, as Anadolu linked a drop in oil prices to hopes for a Washington-Tehran agreement and Bank of Canada Governor Tiff Macklem left open further rate increases.
Macklem spoke Nov. 3 before the House of Commons Standing Committee on Finance. He said the Bank would decide one meeting at a time and that “there could be a need to raise the policy rate further,” adding that officials would “proceed carefully” amid uncertainty.
The Bank of Canada raised its policy rate by 25 basis points to 2.5% on Oct. 28. Macklem forecast inflation near 3.5% by year-end, with the rate staying at or above 3% for much of 2027 before moving close to the Bank’s 2% target around mid-2028. Bank officials said higher oil prices and refinery margins were raising costs for households and businesses, with more of those business costs expected to be passed through over the next year.
FXStreet put USD/CAD at 1.3993 at 12:58 p.m. ET (17:58 UTC), after the pair earlier reached 1.3950. The outlet described the quote as little changed and said Canada’s status as a major crude exporter leaves its currency sensitive to oil prices.
Anadolu reported Brent crude at $103.20 a barrel at noon ET (17:00 UTC), down $1.59, or 1.5%. West Texas Intermediate was at $95.83, down 63 cents, or 0.7%. The agency said both benchmarks had fallen more than 7% Monday.
A Qatari delegation spent about three hours with Iranian counterparts Monday, Qatar’s Foreign Ministry spokesperson Majed bin Mohammed Al Ansari said. He said both Washington and Tehran were reviewing mediator proposals. Al Ansari said he had no specific breakthrough to announce.
The U.S. Bureau of Labor Statistics (BLS) reported 7.523 million job openings in September, up from 7.190 million in August. Statistics Canada’s Labour Force Survey and the BLS’ October Employment Situation report are scheduled for Friday, Nov. 6; the U.S. report is due at 8:30 a.m. ET. The Bank of Canada’s next rate announcement is scheduled for Dec. 9.
