Canadian Dollar Rallies on Oil Price Surge Amid Escalating Middle East Tensions
The Canadian dollar strengthened against other major currencies on Tuesday, buoyed by surging oil prices. Brent crude futures rose nearly 2% to $98.97 a barrel, hitting a six-week high, after Iran threatened to retaliate against any new US attacks on its assets and Saudi-led coalition forces vowed a resolute response to Houthi rebel attacks.
WTI crude futures also gained, increasing by 3.2% to $94.39 a barrel. The increase in oil prices was driven by growing concerns about the Middle East conflict, which has escalated tensions between Iran and Saudi-led coalition forces.
The Canadian dollar's rise against other currencies is largely attributed to its heavy reliance on oil exports. As global oil demand continues to grow, the demand for the Canadian dollar also increases, driving up its value against other currencies.