Canadian Dollar Hits 18-Month Low Amid Oil Price Drop
The Canadian dollar weakened on Monday morning, hitting its lowest point in 18 months against the U.S. dollar before finding some support. At 8:50 a.m. CDT, the Canadian dollar was trading at US$0.7016, or US$1 = C$1.4253, slightly lower than Friday’s close of US$0.7020, or US$1 = C$1.4246.
The decline was partly driven by losses in crude oil prices, as the Canadian dollar is closely tied to energy markets. West Texas Intermediate (WTI) oil dropped 1.6 percent to US$89.63 per barrel. Despite some oil exports from the Persian Gulf reaching pre-war levels in September, shipping data remained inconsistent, adding to market caution.
The Toronto Stock Exchange (TSX) also saw a decline, falling 145.41 points to trade at 35,357.24. The absence of fresh domestic economic news left oil prices as the primary factor influencing the currency’s movement.