CAD Rebounds from Two-Week Low as Oil Prices Rise

The Canadian dollar rebounded on Monday from its lowest level in two weeks against the US dollar, bolstered by rising oil prices and month-end hedging flows.

The loonie, or CAD, climbed to around C$1.389 per US dollar, up from a more than two-week low of C$1.3911 earlier in the session.

Oil prices surged above $90 a barrel, rising over 3% after renewed tensions between the US and Iran raised concerns about global oil supplies.

This boost to energy-exporting Canada typically benefits the CAD, as higher crude prices support the country's currency.

The loonie's gains were limited, however, as markets increased bets that the Federal Reserve could raise interest rates in September, supporting US Treasury yields and the dollar.