Loonie Slides as Crude Oil Prices Plunge on Iran-U.S. Deal Speculation

The Canadian dollar, also known as the loonie, took a hit on Friday morning. The currency had a rough week and was showing signs of weakness, trading at US$0.7067 or US$1=C$1.4136.

This comes as crude oil prices declined due to speculation about a potential deal between the U.S. and Iran to re-open the Strait of Hormuz. Brent crude oil fell by US$1.38 to US$105.22 per barrel, while West Texas Intermediate retreated by US$1.43 to US$93.18/barrel.

The decline in oil prices had a ripple effect on other markets, with the TSX/S&P Composite Index down 5.25 points at 35,701.21. However, gold managed to gain some ground, increasing by US$16.00 per ounce to US$4,314.00.