Canadian Dollar Hits 18-Month Low on Oil Price Decline
The Canadian dollar dropped to its lowest level in 18 months against the US dollar on Monday morning, driven by losses in crude oil prices. 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.
The weakness in the Canadian dollar was largely attributed to the decline in crude oil prices, as the currency is closely tied to energy markets. West Texas Intermediate (WTI) crude oil fell by 1.6 per cent to US$89.63 per barrel, contributing to the downturn.
Shipping data released Monday showed that oil exports from the Persian Gulf had surpassed pre-war levels on roughly half of the days in September. However, market caution persisted due to the unpredictable nature of shipping routes.
The Toronto Stock Exchange (TSX) also saw a decline, dropping 145.41 points to trade at 35,357.24 at the same time.