Canadian Dollar Hits Two-and-a-Half-Month Low Amid Middle East Uncertainty

The Canadian dollar has hit its lowest point in two and a half months against the US dollar due to uncertainty surrounding Middle East peace talks. The loonie weakened by 0.2% to trade at 1.4165 per US dollar, or 70.60 US cents.

This decline is attributed to safe-haven demand for the greenback as investors seek refuge from geopolitical tensions between Iran and other nations. Qatari mediators are set to hold separate talks with Iranian Foreign Minister Abbas Araqchi in New York and with the US side, which may potentially ease the situation.

Adam Button, chief currency analyst at investingLive, stated that 'there's a hunkering down' among investors, who are digging in for year-end safety. This trend tends to favor the US dollar as investors prioritize stability over other assets.