Canadian Dollar Rebounds from Two-Week Low on Rising Oil Prices

The Canadian dollar rebounded on Monday from a two-week low against the US dollar, driven by rising oil prices and month-end hedging flows.

Oil prices surged above $90 a barrel as tensions around the Strait of Hormuz raised concerns about global oil supplies. Brent crude rose more than 3% in value.

The loonie's gains were limited due to increased bets that the Federal Reserve could raise interest rates in September, supporting US Treasury yields and the dollar.

Canada's currency is also recovering from a weaker week, where it fell about 1% after the US imposed new tariffs on $20 billion of Canadian imports.