Canadian Dollar Hits 12-Day Low Amid Rising US Interest Rate Expectations
The Canadian dollar has fallen to its lowest level in 12 days against the US dollar. On Monday, it traded 0.3% lower at 1.3915 per US dollar, or 71.86 US cents. The loonie touched its weakest intraday level since September 2 at 1.3929.
This comes as the US dollar rose across the board due to conflict in the Middle East pushing up oil prices and sending investors towards the safe-haven currency. Investors also bet that the Federal Reserve would hike interest rates on Wednesday for the first time in more than two years, further boosting the greenback.
Marc Chandler, chief market strategist at Bannockburn Global Forex LLC, attributed the Canadian dollar's decline to a stronger US dollar and investors' expectations of a Fed rate hike. He also mentioned that the ongoing trade conflict between Canada and the US is negatively impacting the loonie.