Canadian Dollar Weakened by Falling Oil Prices and Tightening US Monetary Policy

The Canadian dollar is facing pressure due to falling oil prices and expectations of further US monetary tightening.

The loonie has been under persistent pressure as the gap between US and Canadian interest rates widens, making US assets more attractive.

Oil prices provided little support on Monday, with a 2% decline in crude prices weighing on the Canadian dollar due to Canada's large energy-export exposure.

The US dollar remains supported by expectations of further rate hikes, with Chicago Fed President Austan Goolsbee stating that persistent inflation linked to strong demand could require higher rates.