Canadian Dollar Surges on Rising Oil Prices and Shrugging Off Trade War Worries

The Canadian dollar strengthened to nearly a three-week high against its US counterpart on Tuesday as investors focused on higher oil prices rather than an escalating trade war between the two countries.

The loonie was trading 0.2 per cent higher at 1.3790 per US dollar, or 72.52 US cents, after touching its strongest intraday level since August 21 at 1.3760.

Markets are increasingly tuning out tariffs and threats, said Adam Button, chief currency analyst at investingLive, suggesting that the economic impacts of the trade war are still limited.

The Canadian economy lost 41,700 jobs in August, but the unemployment rate held steady at 6.4 per cent.