FXStreet reported that the Canadian dollar weakened in Tuesday’s Asian trading as oil fell, putting the U.S. dollar near C$1.4120 as energy prices remained a factor for Canada’s currency.
The outlet published its exchange-rate snapshot at 8:24 p.m. ET Monday (01:24 UTC Tuesday). At that point, one U.S. dollar bought about C$1.4120; a higher USD/CAD rate means a weaker Canadian dollar. FXStreet had put the pair near C$1.4110 in a separate Asian session, as noted in our Nov. 9 coverage of the earlier quote.
Oil fell further after FXStreet’s currency reading. At 7:14 a.m. ET (12:14 UTC) Tuesday, Brent crude futures stood at $90.40 a barrel, down $2.17, or 2.34%, Reuters reported. Brent also fell below $90 during the session.
U.S. President Donald Trump said Monday that further military action against Iran did not appear necessary at that point and that he expected the conflict to end soon. He said U.S. forces remained ready if circumstances changed. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, disputed accounts of talks with Washington, Tasnim News Agency reported.
Oil matters to Canada’s exchange rate because the country exports more of it than it imports. The Bank of Canada says rising energy prices can increase demand for Canadian dollars and benefit oil producers and public revenue, while higher fuel costs weigh on households. The bank has also said the currency’s historical response to oil has weakened as investment in the energy sector has become less responsive to prices.
The Bank of Canada’s next scheduled interest-rate announcement is Dec. 9.
