Canadian Dollar Holds Firm Amid Oil Surge and Trade Tensions

The Canadian dollar maintained its recent strength against the U.S. dollar on Wednesday, benefiting from a weaker greenback and higher oil prices.

Oil surged above $100 per barrel for the first time since July, driven by concerns about disruptions to global energy supplies due to intensifying US-Iran hostilities and Middle East attacks.

Despite escalating trade tensions between the two countries, with Washington restricting imports of Canadian products including alcohol and dairy goods in response to Canada's retaliatory tariffs, the loonie held steady near a three-week high against the USD.

The dollar index fell to a nearly three-week low as the yen strengthened sharply and Treasury yields eased, providing additional support to currencies like the Canadian dollar.