Canadian Dollar Edges Lower Amid Rising Oil Prices and Trade Tensions

The Canadian dollar declined against its US counterpart on Thursday as investors weighed the impact of rising oil prices against ongoing trade tensions and awaited key US inflation data.

The loonie edged lower to around C$1.3808, representing a modest decline from Wednesday's close near C$1.3805, or roughly 72.42 US cents per Canadian dollar.

Brent crude oil prices remained above $100 a barrel due to escalating tensions in the Middle East and concerns over disrupted energy flows, supporting commodity-linked currencies like the loonie.

However, broader risk aversion and ongoing uncertainty surrounding Canada-US trade relations offset this support, causing the Canadian dollar to weaken by around 0.2% on Wednesday.