Canadian Dollar Hits 12-Day Low Amid US Currency Strength

The Canadian dollar hit a 12-day low against its US counterpart on Monday as domestic inflation data met expectations and investors bet on a Federal Reserve interest rate hike this week. The loonie was trading 0.3% lower at 1.3915 per US dollar, or 71.86 US cents, after touching its weakest intraday level since September 2 at 1.3929.

Chief market strategist Marc Chandler attributed the driver of a stronger US dollar to the shift in expectations on Fed policy. The US dollar (DXY) rose across the board as conflict in the Middle East pushed up oil prices and sent investors towards the safe-haven currency.

Canadian Prime Minister Mark Carney is welcoming dozens of global investors to Toronto this week, hoping to lure investments for more than 160 projects that he says are key to steering Canada's economy through a trade war with the United States. The country's consumer price index rose 3% year-over-year in August, matching the previous month's pace and economists' forecasts.