Canadian Dollar Stays Firm Despite Oil Price Drop

The Canadian dollar has maintained its relative strength against the US dollar despite a decline in crude oil prices. As of 9:25 a.m. CDT, the Loonie was trading at US$0.7092 or US$1=C$1.4100, slightly firmer than Monday's close of US$0.7085 or US$1=C$1.4114.

The upcoming interest rate announcement from the U.S. Federal Reserve on Wednesday is being closely watched by analysts. Despite expectations that rates will remain unchanged, accompanying statements are expected to provide clues about future moves, with a potential rate hike anticipated as early as September.

Crude oil prices continue to be weighed down by optimism over a de-escalation of the conflict in the Middle East. As a result, West Texas Intermediate has dropped 1.6% to US$81.25 per barrel.