Canadian Dollar Shows Resilience Amid Crude Oil Weakness

The Canadian dollar showed slight resilience on Tuesday morning despite ongoing weakness in crude oil prices. At 9:25 CDT, the loonie was trading at US$0.7092 or US$1=C$1.4100, a marginal improvement from Monday's close of US$0.7085 or US$1=C$1.4114.

The U.S. Federal Reserve is set to announce its next interest rate decision on Wednesday, with market analysts expecting no change in rates. However, accompanying statements will be closely scrutinized for hints at future monetary policy shifts, including a potential rate hike as early as September.

Crude oil prices continued to feel the weight of optimism over a de-escalation of conflict in the Middle East, with West Texas Intermediate down 1.6 per cent at US$81.25 per barrel on Tuesday.