Canadian Dollar Drops to 18-Month Low Amid U.S. Strength and Market Concerns

The Canadian dollar weakened on Monday, reaching its lowest point in 18 months against the U.S. dollar. The currency settled at US$0.7016, or US$1=C$1.4254, a slight decline from Friday’s close of US$0.7020. The broader strength of the U.S. dollar globally contributed significantly to this drop, with additional pressure coming from concerns over France’s budget deficit.

In the energy sector, oil exports from the Persian Gulf surpassed pre-war levels for roughly half of September, according to shipping data released Monday. Despite this, the price of West Texas Intermediate (WTI) crude oil fell by 2.1%, settling at US$89.18 per barrel.

Meanwhile, the TSX Composite Index showed a modest gain, rising by 15.90 points to close at 35,518.55 points. This uptick in the index suggests some resilience in the Canadian equities market despite the currency’s decline.