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

The Canadian dollar has rebounded from its lowest level in over two weeks against the US dollar, thanks to rising oil prices and month-end hedging flows.

The loonie climbed to around C$1.3911 per US dollar earlier in the session, its weakest level since mid-August before it recovered.

This move was driven by an increase in crude oil prices above $90 a barrel, with prices rising more than 3% due to renewed U.S.-Iran military tensions around the Strait of Hormuz.

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