Canadian Dollar Rises Amid Oil Gains and Escalating Trade Tensions with US

The Canadian dollar has strengthened to its highest level in nearly three weeks against its US counterpart. The currency's gain comes despite escalating trade tensions between Canada and the United States.

The loonie, as it is often called, reached a high of C$1.3760 per US dollar, its strongest intraday level since August 21. This increase in value has been driven by rising oil prices, which have bolstered Canada's trade and income outlook.

Canada's retaliatory tariffs on US goods took effect after midnight, intensifying an 18-month-old trade dispute. However, these measures have so far had little impact on the Canadian dollar's advance. Prime Minister Mark Carney has called for a further shift away from Canada's biggest trading partner.