Canadian Dollar Edges Lower Amid Oil Price Volatility and Trade Uncertainty

The Canadian dollar weakened on Thursday as investors weighed rising oil prices against renewed trade risks and awaited US inflation data that could shape expectations for the Federal Reserve's next policy move.

Oil prices remained above $100 a barrel, supported by escalating US-Iran hostilities and concerns over energy flows through the Middle East. Brent crude was trading near $102 a barrel, while West Texas Intermediate (WTI) crude traded near $97.

The Canadian dollar typically benefits from higher oil prices due to its commodity-linked nature and reliance on energy exports for trade income. However, this support was offset by broader risk aversion and continued uncertainty over Canada-US trade relations.