Canadian Dollar Falls Amid Middle East Uncertainty

The Canadian dollar has hit a two-and-a-half-month low against its US counterpart as investors seek safe-haven assets amid uncertainty over Middle East peace talks. On Monday, the CAD fell 0.2% to C$1.4165 per USD, or 70.60 US cents, reaching its weakest level since July 9 at C$1.4175.

According to Adam Button, chief currency analyst at Investing.com, investors are taking defensive positions in response to the Iran crisis. 'There is a sense of hunkering down,' he said. 'Across markets, investors are now taking defensive positions through the end of the year and looking for a safe haven from Iran, and that tends to flow into the US dollar.'

The US dollar has strengthened as a result, holding near a two-month high against a basket of major currencies. Gold prices have also fallen 3.7% as investors seek safer assets.